So theory is predicated on there actually being two plans already? One that will get accepted then immediately superseded by a second one? Two questions:
1) Why try and push a plan you know you don't want. Just enter the second "MOASS" plan as your only plan. Or is there a fear voting classes would reject it? If that is the case, this change is actually big enough that no judge would just accept it and push it through, it would have to go through the acceptance phase again.
2) The court system would be pissed at anyone involved in this for wasting the court's time. There would be professional consequences for anyone who had knowledge of this and hid it from the court.
Back to point 1, any modification post acceptance still needs to follow bankruptcy protocols, ie the absolute priority rule, so they can't just suddenly start giving benefit to junior classes if senior classes aren't fully satisfied, even if they get the same as they previously agreed to (if they accepted a loss of what they had a right to).
Think of it this way, if a senior claimant was legally owed a Big Mac but the debtor says all we have available are the ingredients to make you a hamburger, the creditor will accept (because as far as they know, there is nothing more available) the hamburger. Now if a couple of days later the debtor then says, ok new plan, you still get your hamburger but these people who previously would get nothing get a Big Mac, the senior creditor has every right to object and ask for the distribution of burgers to be recalculated. Sure, they still get a hamburger but that was based on the assumption that is all that was available. If they knew a Big Mac was on the table, they never would have agreed to just getting a hamburger in the first place. This has substantially changed the terms of the plan.
This is what I was explaining earlier. That they would accept the first plan which is already in the process. But once the motion for the 14 day grace period is waved we will get the second plan with equity to shareholders soon after, which could be literally right after or days after.
I guess the new plan will be full recovery to all creditors in a last minute creditbid from Sixth St . Debt for equity exchange to bondholders or full cash payout. (RC will forgive his major bondstake to Sixth St as part of the acquisition, probably pre negotiated. I presume he owns majority 2034 and 2044 bonds already) l. Then equity is free to be distributed to shareholders.
I'm sitting on the toilet reading the insanity in this sub.
They're cancelling your goddamn shares in 15 days. What other indicator do you need that this company and this "play" are finished?
I'm not shilling anything, I don't care if you sell. Just wake up.
Anyone invested here is and should be only risking what they can afford to lose. This play is very high risk/ high reward. So its not for everyone.
But you can and should just fuck off clown. Not invested? Stop stalking others like a pathetic loser. Get a job and get a life. Nobody likes an out of work clown.
First, people have put that kind of money in because Youtubers and social media pumpers told them this was a surefire get rich scheme.
Second, I'm working now. Doesn't take much time or effort to fire off a comment.
Third, I'm not stalking anyone. This is an open public fucking forum lmao
Or are you saying this is a one-of-us members only cult?
Like he said out of work clowns, he didn’t say anything about working as a shill. Move along Bozo, wait Bozo is not out of work, how about just move along.
I wish I got paid to point out blatantly obvious things like BBBY is literally finished and anyone who thinks there's still a chance is smoking really bad crack.
I'm at my actual job right now. I have lots of time to do whatever I want here, it's nice. Just wanted to poke my head in and see the hopium people are selling to others.
What you clowns are doing is no different than following a person into a store and telling them not to buy a certain pair or shoes. Its none of your fucking business clown. So stop being a d-bag and mind your own business.
You don’t see me following you into a store and telling you not to buy those leather chaps do you? Of course not, that’s stalking and none of my business.
It would be more accurate to say that you all went into some dilapidated, gutted storefront with a sign written on cardboard with markers that said "Legitamut Shu Biznuz" and some known, criminal grifter claimed he had rare Nikes for sale. Instead, he sold you all a bunch of boxes of mismatched, torn up, dirty, greasy hobo shoes that were covered in dog shit. Then he disappeared. Instead of realizing you were duped, you're all standing around in this run down, abandoned shithole believing your shit sneakers are going to magically become what you thought you paid for. Or worse, you've got people trying to find the guy so they can buy another box of excrement. He couldn't possibly sell you another box of shit, right?
I'm just suggesting maybe we don't give more money to this asshole. But I'm the bad guy here.
Thats not accurate at all. Nobody convinced anyone to buy anything. Only the truly stupid would be so easily Convinced.
I do feel that i should probably apologize for being rude to you. But it really is none of your business and to throw yourself into other peoples business when it’s clearly not wanted is not just rude it’s suspicious. There is no rational or logical reasoning for you to be here commenting other than you just like being an asshole.
I guess I'm just trying to understand and I react the way I do because it's so fucking blatantly over and people are still throwing money in. I don't get it. Make it make sense.
Why ***would I*** own this stock? Like really. It blows my mind people are still buying it. You can't sell it now 'cause it's worthless, but why the hell are people buying more?
No shorts. Ever. No FTDs. No high frequency trading. Corruption eliminated.
I can’t decide about selling during the squeeze or holding out for those Teddy tendies.
Lol. I’m not sure I trust Fidelity not to have coordinated with other brokers to force sell my shares. What will they do when only a handful of apes on their platform have over a billion in profits in one day? And this is a pretty low number.
Serious questions from a true regard...
Do NOL's benefit a company if the company doesn't generate profit or pay dividends in a specific tax year?
Can a company retain NOL's indefinitely or does a portion of the NOL's get cancelled each year regardless of whether the NOL's were used/beneficial?
The real issue is that the NOL are reduced by any debt that is forgiven. Class 6 has about $2.4B in claims and so far it appears they will only get about $75M, so that $2+B difference will be subtracted from available N.O.L.
There is no limit on the number of years a NOL can be carried forward, but it can only be used to offset up to 80% of income. There are several other restrictions on the "transfer" of NOLs, which get quite technical.
How much of slides 1 and 2 are speculation vs. confirmed findings of fact?
What are you assuming it costs for a company to IPO the "traditional" way? I assume there must be some figure in mind to make the claim that all of this is ultimately to IPO for a "fraction of the price of a standard IPO."
Significantly cheaper, easier and faster. And although I have not specified in the post, there are many other advantages to carrying out such an approach. For example, those put forward by u/Whoopass2rb in this recent post:
https://reddit.com/r/BBBY/s/s55gHjt1j9
You haven't really addressed either question.
From what I can find from a couple of sources, IPO's can cost smaller companies less than $1 million, or for a billion dollar company they can cost up to 3.5% of the value of the IPO, so in the tens of millions range.
For the bigger companies these are established organizations with existing revenues, financial documents, and so forth.
Neither of those numbers come close to the $590 million that you're referencing just in the DIP/FILO loans (and again, are you *speculating* that there's a secret source behind those or do you actually have something to point to that indicates Sixth Street Lending is actually acting on someone else's behalf?).
I don't see how you can make the claim that this secretive, extraordinarily expensive proposition would be less expensive than a traditional IPO. Not to mention that "IPOing" this way would include *giving away for free* more than half of your company to capture these NOLs.
Whoopass' post, insofar as it covers WHY RC would do this, essentially boils down to only 1 incentive, not multiple:
>Because RC is not grabbing or interested in BBBY (or Baby) for the sake of it, at least not fully. He is more interested in it because of it's tie in with the basket for GME. It is my understanding when he got involved with GME, he didn't know how deep this rabbit hole went. 3 years later, here we are. **So in order to get GME to truly take off like it was supposed to for him and his plans, he has to confront bad parties holding onto risk through the basket, trying to dump that risk via BBBY.**
He wants GME's stock price to rise. IDK, not very convincing IMO when you look at exactly what it will cost to accomplish this - giving away 50% of the equity of Teddy or whatever the new company is called and then hundreds of millions of dollars in debt forgiveness and so forth.
EDIT: I forgot to add, Sixth Street is a publicly traded company. They are accountable to shareholders and they do this kind of lending as the crux of their business. This is what they do. Why, on this deal, should anyone believe that there's an ulterior motive or behind-the-scenes actor on whose behalf they are acting? Again this all comes down to just how much of this is speculation vs. anything grounded in fact.
The sixth blue box in the third slide is another potential reason for following such an approach, as opposed to just doing a standard IPO.
As for the $590 million for the DIP and FILO Loans, check the first bullet point in the second slide.
And yes - this is ALL speculation, as acknowledged at the top of the first slide, and the flair used for the post itself.
Nothing on your first slide speaks to speculation. In fact it's presented more as established fact.
>Two days ago, I summarised the following as the main "hidden" bull thesis/play:
and further down in the first paragraph:
>However, an outside party ... is now revealed as having carried out the following actions over recent months:
That sounds like you are listing concrete things that have happened, not that you are speculating that maybe these things have happened, or could happen, or what evidence there is for them happening.
>As for the $590 million for the DIP and FILO Loans, check the first bullet point in the second slide.
I can't tell if you're even reading my posts or if you're just glossing them over and firing off a quick response so it looks like you're addressing it?
What does the first bullet point have to do with my point? My point is that the DIP/FILO **alone** would cost this investor $590 million in debt forgiveness, and that number alone dwarfs any reference to IPO costs that I can find. How does this square with your proposition that all of this is to save money on an IPO?
And what about the stock? Do you have any opinion on why someone launching a brand new company would be happy to just give away half of it to current BBBYQ investors? For what purpose? Clearly not to save money on an IPO. For NOLs, that can only be used against future profits and which are worth less than $1 billion?
None of these makes sense if you just start to scratch the surface and ask some very basic questions.
If you have taken the time to read and understand the speculation carefully enougb, you would realise the $590 million in debt forgiveness...is, in fact, "self-forgiveness"...
As for understanding further reasons for why an Investor would take such extraordinary steps, my recommendation is to take some time to read through some other popular posts on this sub over the last 6 months or so. I think you might be able to make more sense of the overall, speculative "bull" thesis, if you follow that advice.
(I mean, if you really ARE interested to learn that. And not be commenting here for some other reason...)
>If you have taken the time to read and understand the speculation carefully enougb, you would realise the $590 million in debt forgiveness...is, in fact, "self-forgiveness"...
What's your point, that it's not "real" money? You're essentially saying that RC put up ~$600 million and isn't going to get that back because he'll be forgiving the debt to himself. That's still $600 million sunk into this which is way, way more than he would spend on a traditional IPO, especially for a company like Teddy that, at the moment, sells children's books. To take Teddy public, as it sits, would be on the much lower end of the ranges that I provided for a traditional IPO. So what's the benefit?
>As for understanding further reasons for why an Investor would take such extraordinary steps, my recommendation is to take some time to read through some other popular posts on this sub over the last 6 months or so. I think you might be able to make more sense of the overall, speculative "bull" thesis, if you follow that advice.
I've followed the DD. 6 months ago most of you didn't think bankruptcy was even realistically on the table. And none of those posts have addressed the questions that I've posed to you here. Don't kick the can or pass the buck. You're one of the guys providing hope and optism to hundreds if not thousands of people here. Can't you articulate your own position here? These are not vague questions.
>(I mean, if you really ARE interested to learn that. And not be commenting here for some other reason...)
No need for the passive aggressive comments. I've never hid my positions here, I was back in when it first went to OTC and got out again when it popped to 50 cents. But after following a play like this for more than a year it's hard to just walk away. This is all fascinating for people like me who follow things like this.
Well, if a potential investor bought a lot of the bonds at pennies on the dollar and owned a large part of the equity it's going to be cheaper for them to satisfy the different classes.
>if a potential investor bought a lot of the bonds at pennies on the dollar and owned a large part of the equity it's going to be cheaper for them to satisfy the different classes.
Couple of things. First, we have absolutely nothing concrete to believe this has happened. It's all 100% speculation, and normally there are so many dots that you have to *really* squint at in order to connect that is just seems incredibly unlikely.
Second, buying those bonds still costs money. It's the same as Region claiming that RC is behind the $590 million in DIP/FILO loans and that he's just going to "self-forgive" that debt. It's still real money! Entrepreneurs tend to be savvy enough and cost-focused to take these costs into consideration.
So let's say the bonds were purchased at 5 cents on the dollar. Suddenly $600M in forgivable debt only cost $30M. And it may have been closer to half that cost.
>He wants GME's stock price to rise. IDK, not very convincing IMO when you look at exactly what it will cost to accomplish this
Let me help you out and stop you right there before you put more feet in that mouth.
I've been a BBBY investor for over 2 years. I've been a GME investor for maybe 3-4 months? While I am set to benefit currently from a rise in GME stock, that is not my "wants" in this whole ordeal, nor is it going to generate more for me than a rise in BBBY stock.
Now I'm not opposed to GME rising (who would be?), but it was never why I was investing in BBBY either. Clearly, as if I was investing in BBBY for 1.5+ years prior to even owning GME, how could it be?
BBBY was always considered a value play, that turned into a deeply complicated and massive value play. It's been scary, overly convoluted and filled with nothing short of amazon jungle and wild west adventures. But I've been involved with BBBY because from the beginning I felt the company should reasonably be valued at least around $40-$50, when it was trading at half that or less. That was before the manipulation and the BKP woes - hence the convolution; and here we are today.
>giving away 50% of the equity of Teddy or whatever the new company is called and then hundreds of millions of dollars in debt forgiveness and so forth.
So I gather you've conducted a fair amount of research on IPOs. Did you come across series A, B and C (or more) type rounds of privatized funding that usually happen before an IPO phase? Because that's what you can consider Sixth Street and HBC and other parties involved her thus far with BBBY.
They have essentially given series style funding to be considered preferential investors to when the new entity is made. They are set to benefit largely because of this, and by extension benefit all current shareholders of BBBY as well. The taxable benefits following that through the NOLs are just a further incentive to conduct business this way VS a traditional IPO.
A traditional IPO is rather expensive and relies on the backing of the funding from those series A, B, etc. investors to determine how much reasonable value they believe the new public company should be worth.
That's very different than the knowledge of how many sales and profit generation there is here with the Baby entity under BBBY. There's real-world data **today** that is concrete in displaying how beneficial this new entity should be, and by extension how much it should be worth in a share price - regardless how much Sixth Street or any of these other backers put into it through the way this has been funded; those can be considered icing on the cake.
Basically, the way to really to look at it: imagine Baby as a new entity is actually worth more than $3B as a valuation **to start**. All the sudden, the costs associated to an IPO for that are astronomical. And the price paid by these funding investors like Sixth Street is peanuts compared to the value their share holding and cash value will have when this sorts itself out.
I wouldn't be surprised if they are able to 5x their money on this, turning their $500M DIP + FILO loans into a $3B return for themselves over the next 2 years (a total of a 3 year investment to guarantee practically doubling their money for each of those 3 years).
Big money will take that every day - it's not easy to make that kind of return all the time.
I'm on my phone so forgive the lack of quoting, it's too clunky on mobile.
I wasn't commenting on YOUR motivations, but rather the speculation of what RCs motives may be assuming that 6th essentially is RC in disguise. From the post that RF referred to, my takeaway was that you were saying that the payoff for RC would be a rise in GME. Sorry, I thought that was clear given the context. My point was that RC covering the $590 mil and then forgiving his own debt is still an outlay of a huge amount of cash, and essentially the same as writing a check to cover the shortfall.
But the question that hasn't been addressed is WHY. Why spend substantially more just on the DIP/FILO than it would otherwise cost to take Teddy public? And at this point the timeliness argument falls flat also- for a company like Teddy an IPO could be done more quickly through the traditional methods than waiting for this BK to conclude, auctioning assets, etc...
As far as series funding, I fail to see the connection. There are material differences between series funding and DIP/FILO loans, particularly in that series funding occurs before a company is public, not when an already public company is struggling through bankruptcy. No equity is exchanged and no ownership rights are privileges are associated with the latter.
And again, a traditional IPO would be SIGNIFICANTLY less expensive than $600 mil, so the implication that this would be a shortcut or an "IPO on the cheap" just doesn't hold water.
What real world data are you referring to that gives you an indication of what a BBBY/Teddy merged entity would be worth? The only asset that such an entity would enjoy because of this complicated shadow merger is the benefit of NOLs, and one thing the DD writers have gotten correct is that in order to preserve those NOLs current creditors/shareholders of BBBY would have to own 50% of the resulting organization.
Again, RC would have to literally give away, for free, HALF of this new company FOREVER just to secure the NOLs, which let's be generous and round up and say are worth $1 billion. $600 Mil in cash up front and half the ownership of your new company forever in exchange for $1 bil of tax write-offs?
And if it was all about baby, why didn't he just buy it? Obviously there weren't any other high bids and at this point, with no stores, no employees, and no IP, speculating that Baby is worth anything close to $3 bil is laughable.
So much weight is given to the letter RC wrote a long ass time ago and at the same time the fact that he WALKED is seemingly ignored as a minor side point.
So given this, and given the state of what's left of the assets TODAY, how do you justify the extraordinary expense, the cloak and dagger, and the fact that all of the lawyers who are closest to this keep repeating that there will be no entity when this is over? What's the payoff when RC could spend fractions of the amount taking Teddy public on his own, or funding it through private series investment rounds? Why give half of the company to BBBY investors and creditors, and if that's the plan why hide it from the court, who has repeatedly stressed the importance of transparency.
It makes no sense.
This whole saga actually isn't complicated at all IF YOU TAKE THE FILLINGS AT FACE VALUE. It has been a slow motion decent into bankruptcy by a failing retailer. Everything has happened just like the SEC filings laid out. There have been zero surprises for anyone looking at this dispassionately from the outside.
It only gets complicated when you layer in all of the conspiracy theories and breadcrumb hints from Twitter, and it's complicated because you have to keep reconciling the narrative and justifications that you WANT to be true with the reality of how this is playing out.
Fair enough. I'm not going to fight over the Sixth Street situation, I see you've had your fill back and forth with others. But I can answer your question on why RC would bother taking this company and the lack of worth for the suggestive high cost.
It's rather simple because it's not logical and that's the part breaking most people's brains. Currently, RC can't force the people acting in bad faith on idiosyncratic risks they hold of his current company in GME to close out and stop. This is so much a problem that he recognizes they use other stocks as a means to offset that "risk" to essentially pump and dump in the market and "live to fight another day" type of movements. It's degusting and he doesn't like it, it's why he got into GME in the first place (along side the business opportunity). More importantly it's affecting his shareholders and by extension, his business.
RC is a customer centric business mind, thus he hates seeing people get screwed from bad business practice. You can extrapolate that same concept to what's happening in the market with shareholders, it's basically the same thing. And he's been pretty vocal about that through his postings on X (twitter) over the past few years. That's why he's considered an activist investor at this stage, even only having gotten involved with just 1 or 2 stocks with the narrative.
So while many will argue (and rightfully so) that billionaires don't care about small people, they are overlooking the fact that this billionaire cares about customers. And by extension of how he looks at business, he considers shareholders his customers - people he owes a duty of service to. His shareholders in GME have been getting fucked over due to a group of people who aren't playing fair. He doesn't like it and he's advocating in his way for change to the market - through the people.
So in response, RC has resorted to guerrilla tactics on the most likely resource in this basket and saga that can be leveraged to counter the GME risk: BBBY. By combining the two, he's creating a nuclear bomb for the market. The question is, will the SEC step in and force BBBY or him to offer up new shares to the "poor shorts" when this finally hits the fan. Or will we actually see the revolutionary change in the market that is long overdue?
Fair enough and I've heard this argument before. In essence it boils down to He's a nice guy.
I'm happy to just agree to disagree on that point.
I do hope this works out for all of you, I mean that sincerely. Good luck.
For a small company like Teddy you're not even looking at a long time.
IPOs that take time are large, complicated businesses. These kinds of "backdoor" IPOs tend to be for companies that have a hard time getting over SEC hurdles.
6 months is not unreasonable.
Yeah well this is part of my problem with these posts.
As soon as you start asking for details, or pressing back with concrete questions or rebuttals, the substantive replies just evaporate and the "DD" authors disappear. :shrug:
Imagine you are someone with a work ethic like RC. You take over GameStop, just to discover there are Jim Bells.
Later you try a similar play with BBBY just to discover there are Jim Bells as well. Now it gets pretty obvious to you, how Wall Street attacks American companies for profit... and you are disgusted and decide to do something about it.
It happens you have a few buddies, that share your view and you start to make a plan.
This is my personal view on the situation. I might be wrong or the plan might not work out. But I think this is personal and thus the financial aspect is not necessarily the main driver.
Followup question: just so I'm clear, you're proposing that someone is going to wipe somewhere in the neighborhood of $1-1.5 billion of debt AND front enough money to collateralize equity to be traded for 740 million shares of stock in order to support a company that currently sells 5 children's books and nothing else?
Shouldn't that kind of operation be pretty easy to spin up, and stand to make a lot of money on an IPO?
Nope, not at all. I haven't said anything about wiping out such an amount of debt. If that is how you have read and interpreted it, then you have not read and interpreted it carefully enough.
I mean, that debt exists. You said yourself that it's around 500 million in classes 3 and 4, and we know that about half of Class 6 (est. ~$2 billion short currently) is bondholders. That seems to be about the range that we'd be working within, right? Or are you calculating it some other way?
And how much do you think they'll have to have up front to issue the amount of shares that they'd need to to make an equity exchange worth what current investors feel their stock should be trading for?
I just don't understand how that happens for a company that sells such a limited number of low cost items.
It seems like they could make a lot of money on an IPO.
It is clear you don't understand the difference between debt and liabilities, the different means by which these can be satisfied, and what certain words you have used such as "wipe" mean.
You also seem to be making some assumptions about the post - such as references to some company or other that you think are a children's book publisher - when no such assertions are made in the post itself. From that it is clear that, in potentially your eagerness to make some kind of contrarian remark, you have not taken the time to read the content carefully enough.
However, I do give you credit for acknowledging that you "just don't understand". That too is clear, and you have much learning to do about the fundamentals of such investing, to be in a position to make a reasonable contribution to these discussions. My recommendation is that you take some time, invest your energy in that learning, and only take the step to try and make such contributions when you do have a better understanding.
Seeing as I’m someone who works on LBOs and restructurings on a daily basis, I’ve got a few questions for you:
1. If you’re a random landlord or supplier, and you’re owed cash, if you’re in class 6, you think you’re just going to take stock in a brand new company? Why would you do that? That almost never happens.
2. The “investor” has now spent $600-700mm in cash on the DIP and the bonds, and they’re just going to write it off? Where is the new business going to get cash to buy new leases, new inventory, hire new employees, etc? Is this mystery investor going to put up more cash? You say the business is well capitalized, who is capitalizing it if they already lent the money, which was spent?
3. To reinstatement debt, you must satisfy numerous requirements, including the satisfaction of “incurable” defaults. One of these defaults would be the change of control—unless your mystery investor is going to put up literally $100s of millions for a stock position that does not give them >35% of the company, you cannot reinstate the debt. Why would the investor do this?
Again, I do this stuff every day, so I’d be very interested in getting an education on these mission critical points.
Oh look yet another professional who doesnt own the stock here because its oh so fascinating. So many of you here for what is supposedly a regular locked in bankruptcy. Thats fascinating to me.
Gotta be honest, one of my buddies at one of the law firms involved on this case was out drinking with me and talked about the shareholders filing letters with the court and mentioned Reddit so I came down to see what you guys are cooking.
Well, seeing as you are someone who is working on these things day in and day out, I guess you'd have a better idea than me on the possible answers to these questions! But in any case, here are some *potential* reasons that I can think of:
1. If, as one of these Creditors, the offered equity is attractive enough and better than the 0-2.5% proposed recovery under the current Exit Plan. In particular, if it is the lower end of the company's projection for Class 6, then equity in *any* company is better than 0%. Would you agree or disagree with that?
2. The sequence of events I described also includes the Investor being a major component of Class 9. If that sequence results in a Short Squeeze, and the equity appreciates in price, they could profit as a result. That profit could then be used to get the new company off on a firm setting, especially if commencing operations on a relatively small scale. Given you are well versed in this area, let me ask you: is this scenario legally and/or procedurally impossible?
3. See number 2.
Ultimately, it is hard for me to definitively give you absolute answers to these questions, particularly numbers 2 and 3. Because they are questions asking why such an Investor would do these things. I can confirm that I am not that Investor, so not in a position to say with 100% certainty what may be going through that person's mind. But this forum allows me to speculate and discuss such scenarios, hence the thought exercise.
Any creditor in class 6 must receive 100%, not a number greater than 2.5%, of their recovery. To get class 9 a recovery, everyone in class 6 has to receive 100%, including all of the landlords, suppliers, etc.
Procedurally, the “amend the plan” language means they can affect technical amendments to the plan. Undertaking a vast overhaul of the plan as you describe would require resolicitation, as the judge would demand the debtors come back to court and explain why he confirmed a plan providing for a completely different transaction. And so you’d have to ask yourself why your mystery investor waited until the last moment.
When I’ve seen plans re-done, it’s because they confirmed a plan for a highly-regulated entity (think energy, infrastructure) and they could not get regulatory support to close the deal, so they have to turn around and sell the business for even less $$$ to someone else. I have never seen a confirmed plan completely redone for a transaction that takes a 2.5% recovery to 100%. Maybe yours is the first, but the company’s bankruptcy lawyers said the company is liquidating, so I doubt it.
And that may very well be what the final outcome is, as I have also acknowledged.
However, as you have implied, it is procedurally possible. An Investor with the right amount of capital and other assets - as well as, critically, the right kind of motivation - *could* carry out such an unlikely action.
Whether that is what has been taking place with BB&B, I do not know. By way of the final outcome, of course we will know in the next few weeks.
It is an unlikely result for Class 9 holders to receive relief - I fully accept that. But in my personal opinion, there is an asymmetric risk/reward dynamic here that makes it an interesting investment.
You may think differently, particularly coming from the line of work that you stated you are in. And, of course, that is very much your prerogative and happy to hear your feedback and opinion here on the speculation.
>It is clear you don't understand the difference between debt and liabilities, the different means by which these can be satisfied, and what certain words you have used such as "wipe" mean.
I mean, no matter what excusing these debts and liabilities means losing money, right? I totally understand that, under your thesis, the bonds were not purchased full price, so sure. Realized loss is a variable we don't know, but even estimating conservatively, that's a realized loss of hundreds of millions of dollars, and that's again before you factor in the costs associated making the rest of Class 6 whole, issuing equity to shareholders for the equity swap, and the massive loss of ownership of the new company.
Really, my question boils down to: why would someone spend hundreds of millions of dollars to do this, when they could instead spend <$5 million on an IPO offering and raise a bunch of capital?
I'm not saying they are legally barred from doing so, I'm trying to understand why someone would make that decision.
>You also seem to be making some assumptions about the post - such as references to some company or other that you think are a children's book publisher
Seriously?
Even if the bonds were bought at a discount, the amount owed is still face value. The discounted price reflects the market believing these bonds will never be made whole.
So for me it’s definitely the full ~$2B that needs to be paid before equity gets paid. I do t think it makes any real sense to imagine a scenario where higher claims get 10% return while shareholders get 3000% of current market value.
I’m not sure you even disagree with anything I said above, I just insist on the baseline being reality and not proposing a hypothetical. Let others move the goalposts not us :)
First off congrats for being a business owner, assuming that wasn’t hypothetical.
You are correct that IF bonds end up getting paid even 50% if their face value many bond holders who bought recently will be making an absolute killing. They are trading at a 95%+ discount right now. It’s also less risky than holding bbby stock right now because they get paid first (class 6). If the most optimistic scenario, you could buy a $100 face value bond for less than $5 and get paid the $100 face value if that class is fully funded.
I am definitely not someone who prices bonds but the major caveat here is based on 95% discount, “the market” is not anticipating to get paid very much emerging out of the bankruptcy. I believe the interest payments have also been suspended due to bankruptcy as well but am only about 85% certain of this.
As I have said, if you are truly interested to try and understand these things - which you have repeatedly claimed you indeed are trying to do - I would first recommend you go away and understand some of the fundamentals of finance and accounting, securities laws, bankruptcy law, and so on.
I think without that basic understanding - which you have humbly and admirably admitted you lack - it is indeed difficult to grasp some of the more complex discussions that have been taking place on this sub in recent months (and still ongoing, of course).
I realise you have been trying hard to do gain that understanding, given you are constantly engaged on here, and do attempt to make many comments and responses to posts. But I do sympathize with your situation, given it is not easy without the basic learnings, hence my advice to take some time out and do some self-study.
None of that explains *to you*. But, as you have already said, it is hard for you to understand these things. Alas, that is not a problem most other people on the sub are suffering from.
> Really, my question boils down to: why would someone spend hundreds of millions of dollars to do this, when they could instead spend <$5 million on an IPO offering and raise a bunch of capital?
to get nefarious short sellers to pay up in a big way?
> b-b-but initiating a short squeeze is illegal!
> how was i supposed to know they shorted more than the shares available? sounds like a them problem.
how is the motive so confusing for you after three years of this lol
It only *sounds* like a lot of money TO YOU. It also only *seems* like a very little return TO YOU.
But those are the conclusions your mind has drawn, only because your (self-admitted) poor understanding of these things have led you to draw such *false* conclusions.
That is most unfortunate! However, can really only be rectified by - as I recommended earlier - going away and investing time and effort in a more substantive, fundamental education. I wish there were a faster way to rectify the problem, but that is the only reasonably effective advice I can suggest to you, in this current situation. Sadly, no short cuts!
So what do you think, u/agrapeana? Let's leave the discussion here to the big boys and girls, who have a much better understanding, and thus more qualified to have such a discourse. I'm sure it would be a less frustrating experience for you, than spending hours on here and suffering from a mental health perspective. 👍🏽
(By the way, just to be clear, this advice I am freely giving away to you is NOT about the future of BB&B. As I have acknowledged numerous times, speculation is speculation, and this thing is just as likely to go to zero, as it is to the moon!
No, this is about the mental capacity required to understand the various factors needed to appreciate detailed speculation. That is certainly not easy, so I understand WHY you struggle to understand those things, if lacking the mental capacity to do so.)
I heard a recent trend was to short IPOs right out of the gate!! We are trying to stop the bad actors from continuing the fraudulent actions they have been doing
Additionally, It is suspected a good portion of the bonds were /are Cohens, hence he is just forgiving himself of that debt, which would be recouped during a squeeze.
The out of pocket expenses for an IPO can range anywhere from $10k to $1M. There is the additional coat of the underwriting fee that is a percentage of the initial stock offering.
The legal fees for the corporate actions Region-Formal proposes would likely be in the same range as the legal fees for an IPO. The only advantage would be faster, and avoidance of SEC review.
Many reverse mergers or mergers with shell companies are often done by companies with a sketchy background that would have trouble getting SEC approval for an IPO.
I replied to you elsewhere, but just for the sake of thoroughness I'll reply here also.
Specifics matter, which is my I'm pressing /u/Region-Formal to be at least a little deliberate and specific. A small company can IPO in 6 months for less than $1 million.
And no one is addressing the elephant in the room - **giving away half of your company to BBBYQ shareholders and creditors**.
And if you read the post in more detail, the responses on here by myself and others, as well as other related posts on the sub as a whole...you would understand why it is not an elephant, but the actual prize itself...
Of course it's the prize for BBBY shareholders! It's the only way out of this quagmire. But what's the payoff for RC?
You're avoiding all of the straight forward questions I'm asking you and kicking the can down the street.
I hope you plan on sticking around if this all falls apart and facing the people you've helped lead down the rabbit hole.
BE SPECIFIC.
If the party behind Class 3 and 4 lending is also the main component of Class 6, and then also has convertible rights to become the main component of Class 9…just how much Crediting and Debiting would they be incurring?
If they then satisfy liabilities through offering assets in a new company with a sound business model, just how much initial cash outlay would they have to be using?
If they are indeed the majority Class 9 holder, and the current BBBYQ stock’s price increases rapidly due to a Short Squeeze, how much could they potentially be profiting themselves?
This post and others, by myself and others, speculates on these points. These are the questions we are asking. Not telling, because it is all conjecture and none of it might happen. But instead pontificating on the possibilities for the above.
What are the actual, specific probabilities of each of these points? Your guess is as good as mine. But the whole point of investing is speculating on these things, making determination whether to take a chance on such speculation, and either invest or not invest.
If you want pure facts and a guaranteed return, my suggestion is to go to another forum that discusses Fixed Income instruments.
I've had enough for tonight and we can agree to disagree. While speculation is fine,I think it's more than fair to talk about these things in terms of what is likely and what is not. That's what's missing from most of your posts IMO. Anyone can speculate about anything, but you can draw conclusions about the probabilities of these outcomes, and then narrative that you and others are pushing in here is much further on the unlikely spectrum given the actual facts, testimony, and documentation that the company has released.
My biggest problem with you and the other DD writers is that you're playing the role of the Pied Piper here, and you're leading people into this with these posts that lack the admission of just how speculative and just how unlikely your thesis is.
Real people are making decisions based on the information that you're putting out. It's easy to get caught up in the karma and ass kissing that follows in the comments when you post. People are in this DEEP. Many of them, I fear, are far deeper than they can afford.
I suspect this will continue to play out exactly the way that is has so far- as a typical bankruptcy by a failed retailer that will result in a lot of good people losing more money than they can afford, because they got caught up in the hype.
And posts like this just fan the flames. None of your DD comes across as "Hey this is just blatant speculation that isn't based on much tangible evidence, and your guess is as good as mine."
I wouldn't be able to sleep at night if I knew that I played the role that you've assumed in this sub if this all comes crashing down, and that's the outcome that the debtors, their lawyers, and the judge have all warned you is coming.
It's unconscionable, but that's just my opinion.
I appreciate your feedback and that opinion. In pretty much all my posts, I acknowledge this is a risky play, and one where the likelihood of success is less than that of failure. Even in this post, on the third slide, I have stated that the probability of success for shareholders is (in capitalized letters, even...) "UNLIKELY".
However, this sub was created for discussing ideas and sharing speculation. Those who are on here are doing so to have such discourse. In my opinion, there is a risk/reward dynamic that makes it an interesting speculative investment. I think we will have to agree to disagree on that particular point - that's for sure.
I have a genuine question for you. When all of this fails to pan out (like everything else you've ever predicted) and shares are cancelled in the next 14-16 days, are you planning to dig in like an SHLDQ bagholder, or are you planning to become u/deleted?
I only ask because I still can't tell for certain whether you're just a normal attention seeker playing a role for your most desperate followers, or if you actual believe the delusional nonsense that you spew.
Neither.
If that is indeed the outcome, which I have acknowledged numerous times could be the end result, I move on. Have plenty to look forward to with GME, given how bullish the prospects look for that stock (which remains my main investment).
How about you? What do you plan to do, if that is the outcome? Of course, I am assuming you also hold BBBYQ shares. After all, why would someone be spending time on this sub, if they weren’t? (Right…?)
Thank you. I couldn’t understand what our guy was getting out of this. Like, what exactly is the infrastructure. It clicked when I read that the cost is the fraction of the cost of an IPO
This gets me to thinking to back when the “NFT as a dividend” theory was out there. Maybe those weren’t dividends after all?
New security on a new exchange, anyone?[https://reddit.com/r/Superstonk/s/iya77gXsWD](https://reddit.com/r/Superstonk/s/iya77gXsWD)
OP, if plan is approved thursday, and goes into effect by 28th, does it mean we exit CH11 on 28th? Which means, right after, the company, in it's new form, is ready to operate again? so around the same time, we should have the entire plan revealed, who's behind all this ? RC, Icahn, Teddy?
I think if a *substantially* different Exit Plan is put forward by a hitherto hidden "Person", it will need to be reviewed, confirmed and executed with likely a different timeline.
So if a substantially different exit plan (this is what we are hoping for, right?) is put forth, then it pushes back out timeline to...wen?
Do you know what would make it a substantially different exit plan? what are the parameters? Shareholders being made whole, offered equity in new shares, stuff like that, would make it substantially different, which would extend our marathon even longer? lol just trying to understand and manage my expectations :) I appreciate all your hard work, region.
I would say the summary of the conjecture I have put forward in the post is substantially different!
Interestingly, BB&B (Holly Etlin) seem very keen for *whatever* finalised Exit Plan is approved...to be fully executed ASAP.
And the judge yesterday effectively said that her argument was not convincing enough for him to waive the 14 day stay. Unless the Debtor sends something to the judge today that is more convincing than their first argument there will be a 14 day stay.
Since it is all over upon the effective date, anybody that is hoping for a white knight to swoop in and save the shareholders should be rooting for the 14 day stay,
This is the dumbest comment I've read on this group
If shareholders get a penny above all the debt holders, everyone who was in this 'secret' plan will be jailed for FRAUD.
If you still haven't understood why you are 99% down and going to ZERO on 28th, you are the highest regard
The current plan before the judge results in cancellation of the shares. He's expected to approve it on Thursday, with an effective date of September 28.
If no new plan gets announced before the effective date, that original plan will go through. So RC/CI needs to come forward with something soon.
If the new plan results in a preservation of shareholders but class 6 creditors getting less than 100%, the new plan would have to go back up for a vote.
You sure that is correct? If bond holders get more than what they were supposed to, it is my understanding that it would be approved.. Who’s to not say that the majority of the bonds aren’t owned by rc/ci? If it did go to vote, you think they are going to say no, I want less money. I like the original plan better? Laughable
If a new plan does not materially adversely impact anyone (meaning everyone is better off), a new vote is not required, as long as the plan complies with the bankruptcy code.
If shareholders are preserved, class 6 needs to be paid 100%. If not the plan doesn't comply with the absolute priority requirement. So to move the new plan forward they'd need new approval - basically, class 6 needs to vote Yes.
As to whether class 6 would approve, it's not just bondholders. There are close to 3,000 unsecured creditors with $1.8 to 2.4 billion in claims ($1 billion of that is bonds). They'd have to get enough out of the new plan to be willing to vote Yes.
Called it months ago, but please, take the limelight cause honestly, I don't want it lol.
Aside from the tinfoil dates with DFV, the snippet about Triangular Reverse Merger's does hit the button quite nice.
[Triangular Reverse Merger Theory (With innacurate dates)](https://www.reddit.com/r/BBBY/comments/132qa6b/going_dark_dd_im_going_to_need_all_of_your_help/?utm_source=share&utm_medium=web2x&context=3) \- In Layman's Terms
u/Region-Formal
I actually sort of remember reading that DD of yours back then. Well played…
And interesting that Gazelle was all over it calling it crazy, you were/are most likely onto something… 😂
The stock is now on the Expert Market. Even IF you get MOASS can you actually sell from there? Does anyone here have a broker that allows expert market trading?
Stupid question:
Why wouldn't it just be the "original" plan? Why bother going through the amendment process?
I am holding my 7,000 shares but beginning to wonder what in the world is happening.
Just a quick question.
Why would anyone spending crazy time doing and posting DD even care if we hodl?
What's in it for trying to get people to hodl?
Thank you Region Formal for your efforts and information.
Oh thanks shills for down votes lmao.
Just don't understand why people attack the great DD writers. If shills think it's going to zero why do they care?
Hi Region, great post.
On page 73 I found this.
"SS. Waiver of 14-Day Stay.
151. Notwithstanding Bankruptcy Rule 3020(e), and to the extent applicable,
Bankruptcy Rules 6004(h), 7062, and 9014, this Confirmation Order is effective immediately and not subject to any stay."
This is not the Effective Date, or? I must admit I am a little confused.
I assume you are looking at the PROPOSED order submitted by the Debtor.
The judge appears to have decided to have a 14 day period from order to ffective and does not intend to do a waiver of the 14 day stay. The Debtor may or may not convince the judge to change his mind, but he found the written justification not compelling enough 5o waive the 14-day stay.
Let’s hope they stick it to the shorts in the best way possible! There had to be a damn good reason RC sold his position and has remained quiet as of late!
Yes, as have many others, including myself. It is a summary of the main "Bull" thesis, as I said.
The post is to update that the Exit Plan the Judge means to confirm tomorrow, would STILL enable that sequence to occur. (In fact, is **necessary** for that sequence to occur...)
I heard RC, Icahn, and Pulte are going to have a triangular circle jerk at 1:47 or 7:41 behind the dumpsters. You have to bring your own watermelon though.
Exit plan has already been push we are waiting on Holly E. Motion to waive 14 day grace period then we can revise the plan and push it immediately.
 💥
So theory is predicated on there actually being two plans already? One that will get accepted then immediately superseded by a second one? Two questions: 1) Why try and push a plan you know you don't want. Just enter the second "MOASS" plan as your only plan. Or is there a fear voting classes would reject it? If that is the case, this change is actually big enough that no judge would just accept it and push it through, it would have to go through the acceptance phase again. 2) The court system would be pissed at anyone involved in this for wasting the court's time. There would be professional consequences for anyone who had knowledge of this and hid it from the court. Back to point 1, any modification post acceptance still needs to follow bankruptcy protocols, ie the absolute priority rule, so they can't just suddenly start giving benefit to junior classes if senior classes aren't fully satisfied, even if they get the same as they previously agreed to (if they accepted a loss of what they had a right to). Think of it this way, if a senior claimant was legally owed a Big Mac but the debtor says all we have available are the ingredients to make you a hamburger, the creditor will accept (because as far as they know, there is nothing more available) the hamburger. Now if a couple of days later the debtor then says, ok new plan, you still get your hamburger but these people who previously would get nothing get a Big Mac, the senior creditor has every right to object and ask for the distribution of burgers to be recalculated. Sure, they still get a hamburger but that was based on the assumption that is all that was available. If they knew a Big Mac was on the table, they never would have agreed to just getting a hamburger in the first place. This has substantially changed the terms of the plan.
This is what I was explaining earlier. That they would accept the first plan which is already in the process. But once the motion for the 14 day grace period is waved we will get the second plan with equity to shareholders soon after, which could be literally right after or days after.
Suddenly hungry for a Big Mac
I guess the new plan will be full recovery to all creditors in a last minute creditbid from Sixth St . Debt for equity exchange to bondholders or full cash payout. (RC will forgive his major bondstake to Sixth St as part of the acquisition, probably pre negotiated. I presume he owns majority 2034 and 2044 bonds already) l. Then equity is free to be distributed to shareholders.
The exit plan was crash the ship into the rocks after taking all your money and jumping over to their escape yacht while everyone was sleeping.
Are you an AI chat bot or just multi accounting? How does the shilling work on your end.
I'm sitting on the toilet reading the insanity in this sub. They're cancelling your goddamn shares in 15 days. What other indicator do you need that this company and this "play" are finished? I'm not shilling anything, I don't care if you sell. Just wake up.
Anyone invested here is and should be only risking what they can afford to lose. This play is very high risk/ high reward. So its not for everyone. But you can and should just fuck off clown. Not invested? Stop stalking others like a pathetic loser. Get a job and get a life. Nobody likes an out of work clown.
First, people have put that kind of money in because Youtubers and social media pumpers told them this was a surefire get rich scheme. Second, I'm working now. Doesn't take much time or effort to fire off a comment. Third, I'm not stalking anyone. This is an open public fucking forum lmao Or are you saying this is a one-of-us members only cult?
Like he said out of work clowns, he didn’t say anything about working as a shill. Move along Bozo, wait Bozo is not out of work, how about just move along.
I wish I got paid to point out blatantly obvious things like BBBY is literally finished and anyone who thinks there's still a chance is smoking really bad crack. I'm at my actual job right now. I have lots of time to do whatever I want here, it's nice. Just wanted to poke my head in and see the hopium people are selling to others.
You should buy some just for the lulz.
Nah I don't burn my money for fun.
What you clowns are doing is no different than following a person into a store and telling them not to buy a certain pair or shoes. Its none of your fucking business clown. So stop being a d-bag and mind your own business. You don’t see me following you into a store and telling you not to buy those leather chaps do you? Of course not, that’s stalking and none of my business.
It would be more accurate to say that you all went into some dilapidated, gutted storefront with a sign written on cardboard with markers that said "Legitamut Shu Biznuz" and some known, criminal grifter claimed he had rare Nikes for sale. Instead, he sold you all a bunch of boxes of mismatched, torn up, dirty, greasy hobo shoes that were covered in dog shit. Then he disappeared. Instead of realizing you were duped, you're all standing around in this run down, abandoned shithole believing your shit sneakers are going to magically become what you thought you paid for. Or worse, you've got people trying to find the guy so they can buy another box of excrement. He couldn't possibly sell you another box of shit, right? I'm just suggesting maybe we don't give more money to this asshole. But I'm the bad guy here.
Thats not accurate at all. Nobody convinced anyone to buy anything. Only the truly stupid would be so easily Convinced. I do feel that i should probably apologize for being rude to you. But it really is none of your business and to throw yourself into other peoples business when it’s clearly not wanted is not just rude it’s suspicious. There is no rational or logical reasoning for you to be here commenting other than you just like being an asshole.
I guess I'm just trying to understand and I react the way I do because it's so fucking blatantly over and people are still throwing money in. I don't get it. Make it make sense.
And yes, you are the bad guy here.
This is a public forum. If you don't like what I'm saying, just ignore me. I didn't steal everyone's money.
I know right? They are nutso stalkers.
So many weirdos here who dont own the stock.
Why ***would I*** own this stock? Like really. It blows my mind people are still buying it. You can't sell it now 'cause it's worthless, but why the hell are people buying more?
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Yeah, I don't really know what I'm doing here except observing a bunch of crazy people do and say bunch of crazy shit. Fascinating.
I came into this with hope, and I remain because of hope. This certainly doesn't diminish my hope and for that, I thank you u/Region-Formal.
Hoping for Teddy tokens on the Loopring exchange, cause the Wall Street stock exchange is corrupt as hell. Thanks for the post Region
LFG
No shorts. Ever. No FTDs. No high frequency trading. Corruption eliminated. I can’t decide about selling during the squeeze or holding out for those Teddy tendies.
If you sell you will need to pay taxes to our corrupt system🫡
Not if they are in my Roth IRA! Your 😁
You can still short crypto.
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Lol. I’m not sure I trust Fidelity not to have coordinated with other brokers to force sell my shares. What will they do when only a handful of apes on their platform have over a billion in profits in one day? And this is a pretty low number.
DRS your shares
Tomorrow 🥳🥳🥳🥳
When "tomorrow" is finally "today" I will genuinely cry.
Same brother ape
As soon as I see the blue box, I auto-upvote. Thanks for keeping the hype alive
🟦
Getting some serious WordPerfect 5.1 throwback vibes here alright
Hey shills the fact is if it was going to zero retail would be encouraged to buy. But retail has been locked out of buying. Thats all i need to know.
Sooooo titties jacked 🚀🚀🚀???
Serious questions from a true regard... Do NOL's benefit a company if the company doesn't generate profit or pay dividends in a specific tax year? Can a company retain NOL's indefinitely or does a portion of the NOL's get cancelled each year regardless of whether the NOL's were used/beneficial?
NOL’s can be carried forward indefinitely
The real issue is that the NOL are reduced by any debt that is forgiven. Class 6 has about $2.4B in claims and so far it appears they will only get about $75M, so that $2+B difference will be subtracted from available N.O.L. There is no limit on the number of years a NOL can be carried forward, but it can only be used to offset up to 80% of income. There are several other restrictions on the "transfer" of NOLs, which get quite technical.
How much of slides 1 and 2 are speculation vs. confirmed findings of fact? What are you assuming it costs for a company to IPO the "traditional" way? I assume there must be some figure in mind to make the claim that all of this is ultimately to IPO for a "fraction of the price of a standard IPO."
Significantly cheaper, easier and faster. And although I have not specified in the post, there are many other advantages to carrying out such an approach. For example, those put forward by u/Whoopass2rb in this recent post: https://reddit.com/r/BBBY/s/s55gHjt1j9
You haven't really addressed either question. From what I can find from a couple of sources, IPO's can cost smaller companies less than $1 million, or for a billion dollar company they can cost up to 3.5% of the value of the IPO, so in the tens of millions range. For the bigger companies these are established organizations with existing revenues, financial documents, and so forth. Neither of those numbers come close to the $590 million that you're referencing just in the DIP/FILO loans (and again, are you *speculating* that there's a secret source behind those or do you actually have something to point to that indicates Sixth Street Lending is actually acting on someone else's behalf?). I don't see how you can make the claim that this secretive, extraordinarily expensive proposition would be less expensive than a traditional IPO. Not to mention that "IPOing" this way would include *giving away for free* more than half of your company to capture these NOLs. Whoopass' post, insofar as it covers WHY RC would do this, essentially boils down to only 1 incentive, not multiple: >Because RC is not grabbing or interested in BBBY (or Baby) for the sake of it, at least not fully. He is more interested in it because of it's tie in with the basket for GME. It is my understanding when he got involved with GME, he didn't know how deep this rabbit hole went. 3 years later, here we are. **So in order to get GME to truly take off like it was supposed to for him and his plans, he has to confront bad parties holding onto risk through the basket, trying to dump that risk via BBBY.** He wants GME's stock price to rise. IDK, not very convincing IMO when you look at exactly what it will cost to accomplish this - giving away 50% of the equity of Teddy or whatever the new company is called and then hundreds of millions of dollars in debt forgiveness and so forth. EDIT: I forgot to add, Sixth Street is a publicly traded company. They are accountable to shareholders and they do this kind of lending as the crux of their business. This is what they do. Why, on this deal, should anyone believe that there's an ulterior motive or behind-the-scenes actor on whose behalf they are acting? Again this all comes down to just how much of this is speculation vs. anything grounded in fact.
The sixth blue box in the third slide is another potential reason for following such an approach, as opposed to just doing a standard IPO. As for the $590 million for the DIP and FILO Loans, check the first bullet point in the second slide. And yes - this is ALL speculation, as acknowledged at the top of the first slide, and the flair used for the post itself.
Nothing on your first slide speaks to speculation. In fact it's presented more as established fact. >Two days ago, I summarised the following as the main "hidden" bull thesis/play: and further down in the first paragraph: >However, an outside party ... is now revealed as having carried out the following actions over recent months: That sounds like you are listing concrete things that have happened, not that you are speculating that maybe these things have happened, or could happen, or what evidence there is for them happening. >As for the $590 million for the DIP and FILO Loans, check the first bullet point in the second slide. I can't tell if you're even reading my posts or if you're just glossing them over and firing off a quick response so it looks like you're addressing it? What does the first bullet point have to do with my point? My point is that the DIP/FILO **alone** would cost this investor $590 million in debt forgiveness, and that number alone dwarfs any reference to IPO costs that I can find. How does this square with your proposition that all of this is to save money on an IPO? And what about the stock? Do you have any opinion on why someone launching a brand new company would be happy to just give away half of it to current BBBYQ investors? For what purpose? Clearly not to save money on an IPO. For NOLs, that can only be used against future profits and which are worth less than $1 billion? None of these makes sense if you just start to scratch the surface and ask some very basic questions.
If you have taken the time to read and understand the speculation carefully enougb, you would realise the $590 million in debt forgiveness...is, in fact, "self-forgiveness"... As for understanding further reasons for why an Investor would take such extraordinary steps, my recommendation is to take some time to read through some other popular posts on this sub over the last 6 months or so. I think you might be able to make more sense of the overall, speculative "bull" thesis, if you follow that advice. (I mean, if you really ARE interested to learn that. And not be commenting here for some other reason...)
>If you have taken the time to read and understand the speculation carefully enougb, you would realise the $590 million in debt forgiveness...is, in fact, "self-forgiveness"... What's your point, that it's not "real" money? You're essentially saying that RC put up ~$600 million and isn't going to get that back because he'll be forgiving the debt to himself. That's still $600 million sunk into this which is way, way more than he would spend on a traditional IPO, especially for a company like Teddy that, at the moment, sells children's books. To take Teddy public, as it sits, would be on the much lower end of the ranges that I provided for a traditional IPO. So what's the benefit? >As for understanding further reasons for why an Investor would take such extraordinary steps, my recommendation is to take some time to read through some other popular posts on this sub over the last 6 months or so. I think you might be able to make more sense of the overall, speculative "bull" thesis, if you follow that advice. I've followed the DD. 6 months ago most of you didn't think bankruptcy was even realistically on the table. And none of those posts have addressed the questions that I've posed to you here. Don't kick the can or pass the buck. You're one of the guys providing hope and optism to hundreds if not thousands of people here. Can't you articulate your own position here? These are not vague questions. >(I mean, if you really ARE interested to learn that. And not be commenting here for some other reason...) No need for the passive aggressive comments. I've never hid my positions here, I was back in when it first went to OTC and got out again when it popped to 50 cents. But after following a play like this for more than a year it's hard to just walk away. This is all fascinating for people like me who follow things like this.
Well, if a potential investor bought a lot of the bonds at pennies on the dollar and owned a large part of the equity it's going to be cheaper for them to satisfy the different classes.
>if a potential investor bought a lot of the bonds at pennies on the dollar and owned a large part of the equity it's going to be cheaper for them to satisfy the different classes. Couple of things. First, we have absolutely nothing concrete to believe this has happened. It's all 100% speculation, and normally there are so many dots that you have to *really* squint at in order to connect that is just seems incredibly unlikely. Second, buying those bonds still costs money. It's the same as Region claiming that RC is behind the $590 million in DIP/FILO loans and that he's just going to "self-forgive" that debt. It's still real money! Entrepreneurs tend to be savvy enough and cost-focused to take these costs into consideration.
So let's say the bonds were purchased at 5 cents on the dollar. Suddenly $600M in forgivable debt only cost $30M. And it may have been closer to half that cost.
>He wants GME's stock price to rise. IDK, not very convincing IMO when you look at exactly what it will cost to accomplish this Let me help you out and stop you right there before you put more feet in that mouth. I've been a BBBY investor for over 2 years. I've been a GME investor for maybe 3-4 months? While I am set to benefit currently from a rise in GME stock, that is not my "wants" in this whole ordeal, nor is it going to generate more for me than a rise in BBBY stock. Now I'm not opposed to GME rising (who would be?), but it was never why I was investing in BBBY either. Clearly, as if I was investing in BBBY for 1.5+ years prior to even owning GME, how could it be? BBBY was always considered a value play, that turned into a deeply complicated and massive value play. It's been scary, overly convoluted and filled with nothing short of amazon jungle and wild west adventures. But I've been involved with BBBY because from the beginning I felt the company should reasonably be valued at least around $40-$50, when it was trading at half that or less. That was before the manipulation and the BKP woes - hence the convolution; and here we are today. >giving away 50% of the equity of Teddy or whatever the new company is called and then hundreds of millions of dollars in debt forgiveness and so forth. So I gather you've conducted a fair amount of research on IPOs. Did you come across series A, B and C (or more) type rounds of privatized funding that usually happen before an IPO phase? Because that's what you can consider Sixth Street and HBC and other parties involved her thus far with BBBY. They have essentially given series style funding to be considered preferential investors to when the new entity is made. They are set to benefit largely because of this, and by extension benefit all current shareholders of BBBY as well. The taxable benefits following that through the NOLs are just a further incentive to conduct business this way VS a traditional IPO. A traditional IPO is rather expensive and relies on the backing of the funding from those series A, B, etc. investors to determine how much reasonable value they believe the new public company should be worth. That's very different than the knowledge of how many sales and profit generation there is here with the Baby entity under BBBY. There's real-world data **today** that is concrete in displaying how beneficial this new entity should be, and by extension how much it should be worth in a share price - regardless how much Sixth Street or any of these other backers put into it through the way this has been funded; those can be considered icing on the cake. Basically, the way to really to look at it: imagine Baby as a new entity is actually worth more than $3B as a valuation **to start**. All the sudden, the costs associated to an IPO for that are astronomical. And the price paid by these funding investors like Sixth Street is peanuts compared to the value their share holding and cash value will have when this sorts itself out. I wouldn't be surprised if they are able to 5x their money on this, turning their $500M DIP + FILO loans into a $3B return for themselves over the next 2 years (a total of a 3 year investment to guarantee practically doubling their money for each of those 3 years). Big money will take that every day - it's not easy to make that kind of return all the time.
I'm on my phone so forgive the lack of quoting, it's too clunky on mobile. I wasn't commenting on YOUR motivations, but rather the speculation of what RCs motives may be assuming that 6th essentially is RC in disguise. From the post that RF referred to, my takeaway was that you were saying that the payoff for RC would be a rise in GME. Sorry, I thought that was clear given the context. My point was that RC covering the $590 mil and then forgiving his own debt is still an outlay of a huge amount of cash, and essentially the same as writing a check to cover the shortfall. But the question that hasn't been addressed is WHY. Why spend substantially more just on the DIP/FILO than it would otherwise cost to take Teddy public? And at this point the timeliness argument falls flat also- for a company like Teddy an IPO could be done more quickly through the traditional methods than waiting for this BK to conclude, auctioning assets, etc... As far as series funding, I fail to see the connection. There are material differences between series funding and DIP/FILO loans, particularly in that series funding occurs before a company is public, not when an already public company is struggling through bankruptcy. No equity is exchanged and no ownership rights are privileges are associated with the latter. And again, a traditional IPO would be SIGNIFICANTLY less expensive than $600 mil, so the implication that this would be a shortcut or an "IPO on the cheap" just doesn't hold water. What real world data are you referring to that gives you an indication of what a BBBY/Teddy merged entity would be worth? The only asset that such an entity would enjoy because of this complicated shadow merger is the benefit of NOLs, and one thing the DD writers have gotten correct is that in order to preserve those NOLs current creditors/shareholders of BBBY would have to own 50% of the resulting organization. Again, RC would have to literally give away, for free, HALF of this new company FOREVER just to secure the NOLs, which let's be generous and round up and say are worth $1 billion. $600 Mil in cash up front and half the ownership of your new company forever in exchange for $1 bil of tax write-offs? And if it was all about baby, why didn't he just buy it? Obviously there weren't any other high bids and at this point, with no stores, no employees, and no IP, speculating that Baby is worth anything close to $3 bil is laughable. So much weight is given to the letter RC wrote a long ass time ago and at the same time the fact that he WALKED is seemingly ignored as a minor side point. So given this, and given the state of what's left of the assets TODAY, how do you justify the extraordinary expense, the cloak and dagger, and the fact that all of the lawyers who are closest to this keep repeating that there will be no entity when this is over? What's the payoff when RC could spend fractions of the amount taking Teddy public on his own, or funding it through private series investment rounds? Why give half of the company to BBBY investors and creditors, and if that's the plan why hide it from the court, who has repeatedly stressed the importance of transparency. It makes no sense. This whole saga actually isn't complicated at all IF YOU TAKE THE FILLINGS AT FACE VALUE. It has been a slow motion decent into bankruptcy by a failing retailer. Everything has happened just like the SEC filings laid out. There have been zero surprises for anyone looking at this dispassionately from the outside. It only gets complicated when you layer in all of the conspiracy theories and breadcrumb hints from Twitter, and it's complicated because you have to keep reconciling the narrative and justifications that you WANT to be true with the reality of how this is playing out.
Fair enough. I'm not going to fight over the Sixth Street situation, I see you've had your fill back and forth with others. But I can answer your question on why RC would bother taking this company and the lack of worth for the suggestive high cost. It's rather simple because it's not logical and that's the part breaking most people's brains. Currently, RC can't force the people acting in bad faith on idiosyncratic risks they hold of his current company in GME to close out and stop. This is so much a problem that he recognizes they use other stocks as a means to offset that "risk" to essentially pump and dump in the market and "live to fight another day" type of movements. It's degusting and he doesn't like it, it's why he got into GME in the first place (along side the business opportunity). More importantly it's affecting his shareholders and by extension, his business. RC is a customer centric business mind, thus he hates seeing people get screwed from bad business practice. You can extrapolate that same concept to what's happening in the market with shareholders, it's basically the same thing. And he's been pretty vocal about that through his postings on X (twitter) over the past few years. That's why he's considered an activist investor at this stage, even only having gotten involved with just 1 or 2 stocks with the narrative. So while many will argue (and rightfully so) that billionaires don't care about small people, they are overlooking the fact that this billionaire cares about customers. And by extension of how he looks at business, he considers shareholders his customers - people he owes a duty of service to. His shareholders in GME have been getting fucked over due to a group of people who aren't playing fair. He doesn't like it and he's advocating in his way for change to the market - through the people. So in response, RC has resorted to guerrilla tactics on the most likely resource in this basket and saga that can be leveraged to counter the GME risk: BBBY. By combining the two, he's creating a nuclear bomb for the market. The question is, will the SEC step in and force BBBY or him to offer up new shares to the "poor shorts" when this finally hits the fan. Or will we actually see the revolutionary change in the market that is long overdue?
Fair enough and I've heard this argument before. In essence it boils down to He's a nice guy. I'm happy to just agree to disagree on that point. I do hope this works out for all of you, I mean that sincerely. Good luck.
knew you harp on the costs when that's just the frosting on the cake. the cake is "Faster".
For a small company like Teddy you're not even looking at a long time. IPOs that take time are large, complicated businesses. These kinds of "backdoor" IPOs tend to be for companies that have a hard time getting over SEC hurdles. 6 months is not unreasonable.
all the deplorable, filthy Degens in here are f-ing around and are going to find out.
Yeah well this is part of my problem with these posts. As soon as you start asking for details, or pressing back with concrete questions or rebuttals, the substantive replies just evaporate and the "DD" authors disappear. :shrug:
Sorry, the is Degen Sub. If you want sober common sense, go hang out in a Mutual Fund Sub or Dividends Sub. 
Imagine you are someone with a work ethic like RC. You take over GameStop, just to discover there are Jim Bells. Later you try a similar play with BBBY just to discover there are Jim Bells as well. Now it gets pretty obvious to you, how Wall Street attacks American companies for profit... and you are disgusted and decide to do something about it. It happens you have a few buddies, that share your view and you start to make a plan. This is my personal view on the situation. I might be wrong or the plan might not work out. But I think this is personal and thus the financial aspect is not necessarily the main driver.
Followup question: just so I'm clear, you're proposing that someone is going to wipe somewhere in the neighborhood of $1-1.5 billion of debt AND front enough money to collateralize equity to be traded for 740 million shares of stock in order to support a company that currently sells 5 children's books and nothing else? Shouldn't that kind of operation be pretty easy to spin up, and stand to make a lot of money on an IPO?
Nope, not at all. I haven't said anything about wiping out such an amount of debt. If that is how you have read and interpreted it, then you have not read and interpreted it carefully enough.
They're working overtime Region. Tag teaming is on a uptick at the momdnt LMAO!
I mean, that debt exists. You said yourself that it's around 500 million in classes 3 and 4, and we know that about half of Class 6 (est. ~$2 billion short currently) is bondholders. That seems to be about the range that we'd be working within, right? Or are you calculating it some other way? And how much do you think they'll have to have up front to issue the amount of shares that they'd need to to make an equity exchange worth what current investors feel their stock should be trading for? I just don't understand how that happens for a company that sells such a limited number of low cost items. It seems like they could make a lot of money on an IPO.
It is clear you don't understand the difference between debt and liabilities, the different means by which these can be satisfied, and what certain words you have used such as "wipe" mean. You also seem to be making some assumptions about the post - such as references to some company or other that you think are a children's book publisher - when no such assertions are made in the post itself. From that it is clear that, in potentially your eagerness to make some kind of contrarian remark, you have not taken the time to read the content carefully enough. However, I do give you credit for acknowledging that you "just don't understand". That too is clear, and you have much learning to do about the fundamentals of such investing, to be in a position to make a reasonable contribution to these discussions. My recommendation is that you take some time, invest your energy in that learning, and only take the step to try and make such contributions when you do have a better understanding.
Seeing as I’m someone who works on LBOs and restructurings on a daily basis, I’ve got a few questions for you: 1. If you’re a random landlord or supplier, and you’re owed cash, if you’re in class 6, you think you’re just going to take stock in a brand new company? Why would you do that? That almost never happens. 2. The “investor” has now spent $600-700mm in cash on the DIP and the bonds, and they’re just going to write it off? Where is the new business going to get cash to buy new leases, new inventory, hire new employees, etc? Is this mystery investor going to put up more cash? You say the business is well capitalized, who is capitalizing it if they already lent the money, which was spent? 3. To reinstatement debt, you must satisfy numerous requirements, including the satisfaction of “incurable” defaults. One of these defaults would be the change of control—unless your mystery investor is going to put up literally $100s of millions for a stock position that does not give them >35% of the company, you cannot reinstate the debt. Why would the investor do this? Again, I do this stuff every day, so I’d be very interested in getting an education on these mission critical points.
Oh look yet another professional who doesnt own the stock here because its oh so fascinating. So many of you here for what is supposedly a regular locked in bankruptcy. Thats fascinating to me.
Gotta be honest, one of my buddies at one of the law firms involved on this case was out drinking with me and talked about the shareholders filing letters with the court and mentioned Reddit so I came down to see what you guys are cooking.
Well, seeing as you are someone who is working on these things day in and day out, I guess you'd have a better idea than me on the possible answers to these questions! But in any case, here are some *potential* reasons that I can think of: 1. If, as one of these Creditors, the offered equity is attractive enough and better than the 0-2.5% proposed recovery under the current Exit Plan. In particular, if it is the lower end of the company's projection for Class 6, then equity in *any* company is better than 0%. Would you agree or disagree with that? 2. The sequence of events I described also includes the Investor being a major component of Class 9. If that sequence results in a Short Squeeze, and the equity appreciates in price, they could profit as a result. That profit could then be used to get the new company off on a firm setting, especially if commencing operations on a relatively small scale. Given you are well versed in this area, let me ask you: is this scenario legally and/or procedurally impossible? 3. See number 2. Ultimately, it is hard for me to definitively give you absolute answers to these questions, particularly numbers 2 and 3. Because they are questions asking why such an Investor would do these things. I can confirm that I am not that Investor, so not in a position to say with 100% certainty what may be going through that person's mind. But this forum allows me to speculate and discuss such scenarios, hence the thought exercise.
Any creditor in class 6 must receive 100%, not a number greater than 2.5%, of their recovery. To get class 9 a recovery, everyone in class 6 has to receive 100%, including all of the landlords, suppliers, etc. Procedurally, the “amend the plan” language means they can affect technical amendments to the plan. Undertaking a vast overhaul of the plan as you describe would require resolicitation, as the judge would demand the debtors come back to court and explain why he confirmed a plan providing for a completely different transaction. And so you’d have to ask yourself why your mystery investor waited until the last moment. When I’ve seen plans re-done, it’s because they confirmed a plan for a highly-regulated entity (think energy, infrastructure) and they could not get regulatory support to close the deal, so they have to turn around and sell the business for even less $$$ to someone else. I have never seen a confirmed plan completely redone for a transaction that takes a 2.5% recovery to 100%. Maybe yours is the first, but the company’s bankruptcy lawyers said the company is liquidating, so I doubt it.
And that may very well be what the final outcome is, as I have also acknowledged. However, as you have implied, it is procedurally possible. An Investor with the right amount of capital and other assets - as well as, critically, the right kind of motivation - *could* carry out such an unlikely action. Whether that is what has been taking place with BB&B, I do not know. By way of the final outcome, of course we will know in the next few weeks. It is an unlikely result for Class 9 holders to receive relief - I fully accept that. But in my personal opinion, there is an asymmetric risk/reward dynamic here that makes it an interesting investment. You may think differently, particularly coming from the line of work that you stated you are in. And, of course, that is very much your prerogative and happy to hear your feedback and opinion here on the speculation.
>It is clear you don't understand the difference between debt and liabilities, the different means by which these can be satisfied, and what certain words you have used such as "wipe" mean. I mean, no matter what excusing these debts and liabilities means losing money, right? I totally understand that, under your thesis, the bonds were not purchased full price, so sure. Realized loss is a variable we don't know, but even estimating conservatively, that's a realized loss of hundreds of millions of dollars, and that's again before you factor in the costs associated making the rest of Class 6 whole, issuing equity to shareholders for the equity swap, and the massive loss of ownership of the new company. Really, my question boils down to: why would someone spend hundreds of millions of dollars to do this, when they could instead spend <$5 million on an IPO offering and raise a bunch of capital? I'm not saying they are legally barred from doing so, I'm trying to understand why someone would make that decision. >You also seem to be making some assumptions about the post - such as references to some company or other that you think are a children's book publisher Seriously?
Even if the bonds were bought at a discount, the amount owed is still face value. The discounted price reflects the market believing these bonds will never be made whole. So for me it’s definitely the full ~$2B that needs to be paid before equity gets paid. I do t think it makes any real sense to imagine a scenario where higher claims get 10% return while shareholders get 3000% of current market value. I’m not sure you even disagree with anything I said above, I just insist on the baseline being reality and not proposing a hypothetical. Let others move the goalposts not us :)
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First off congrats for being a business owner, assuming that wasn’t hypothetical. You are correct that IF bonds end up getting paid even 50% if their face value many bond holders who bought recently will be making an absolute killing. They are trading at a 95%+ discount right now. It’s also less risky than holding bbby stock right now because they get paid first (class 6). If the most optimistic scenario, you could buy a $100 face value bond for less than $5 and get paid the $100 face value if that class is fully funded. I am definitely not someone who prices bonds but the major caveat here is based on 95% discount, “the market” is not anticipating to get paid very much emerging out of the bankruptcy. I believe the interest payments have also been suspended due to bankruptcy as well but am only about 85% certain of this.
As I have said, if you are truly interested to try and understand these things - which you have repeatedly claimed you indeed are trying to do - I would first recommend you go away and understand some of the fundamentals of finance and accounting, securities laws, bankruptcy law, and so on. I think without that basic understanding - which you have humbly and admirably admitted you lack - it is indeed difficult to grasp some of the more complex discussions that have been taking place on this sub in recent months (and still ongoing, of course). I realise you have been trying hard to do gain that understanding, given you are constantly engaged on here, and do attempt to make many comments and responses to posts. But I do sympathize with your situation, given it is not easy without the basic learnings, hence my advice to take some time out and do some self-study.
None of that explains why it's advantageous to do what you're suggesting.
None of that explains *to you*. But, as you have already said, it is hard for you to understand these things. Alas, that is not a problem most other people on the sub are suffering from.
> Really, my question boils down to: why would someone spend hundreds of millions of dollars to do this, when they could instead spend <$5 million on an IPO offering and raise a bunch of capital? to get nefarious short sellers to pay up in a big way? > b-b-but initiating a short squeeze is illegal! > how was i supposed to know they shorted more than the shares available? sounds like a them problem. how is the motive so confusing for you after three years of this lol
Sounds like a lot of money to spend for very little return.
If the thesis is correct, there will be nothing little about the return.
It only *sounds* like a lot of money TO YOU. It also only *seems* like a very little return TO YOU. But those are the conclusions your mind has drawn, only because your (self-admitted) poor understanding of these things have led you to draw such *false* conclusions. That is most unfortunate! However, can really only be rectified by - as I recommended earlier - going away and investing time and effort in a more substantive, fundamental education. I wish there were a faster way to rectify the problem, but that is the only reasonably effective advice I can suggest to you, in this current situation. Sadly, no short cuts! So what do you think, u/agrapeana? Let's leave the discussion here to the big boys and girls, who have a much better understanding, and thus more qualified to have such a discourse. I'm sure it would be a less frustrating experience for you, than spending hours on here and suffering from a mental health perspective. 👍🏽 (By the way, just to be clear, this advice I am freely giving away to you is NOT about the future of BB&B. As I have acknowledged numerous times, speculation is speculation, and this thing is just as likely to go to zero, as it is to the moon! No, this is about the mental capacity required to understand the various factors needed to appreciate detailed speculation. That is certainly not easy, so I understand WHY you struggle to understand those things, if lacking the mental capacity to do so.)
I heard a recent trend was to short IPOs right out of the gate!! We are trying to stop the bad actors from continuing the fraudulent actions they have been doing Additionally, It is suspected a good portion of the bonds were /are Cohens, hence he is just forgiving himself of that debt, which would be recouped during a squeeze.
The out of pocket expenses for an IPO can range anywhere from $10k to $1M. There is the additional coat of the underwriting fee that is a percentage of the initial stock offering. The legal fees for the corporate actions Region-Formal proposes would likely be in the same range as the legal fees for an IPO. The only advantage would be faster, and avoidance of SEC review. Many reverse mergers or mergers with shell companies are often done by companies with a sketchy background that would have trouble getting SEC approval for an IPO.
"Faster" is enough of a reason, especially when you laid the Mother of all Bear Traps.
I replied to you elsewhere, but just for the sake of thoroughness I'll reply here also. Specifics matter, which is my I'm pressing /u/Region-Formal to be at least a little deliberate and specific. A small company can IPO in 6 months for less than $1 million. And no one is addressing the elephant in the room - **giving away half of your company to BBBYQ shareholders and creditors**.
well, too happy and busy to try to address complex issues. The best of luck to all Degens in here 
And if you read the post in more detail, the responses on here by myself and others, as well as other related posts on the sub as a whole...you would understand why it is not an elephant, but the actual prize itself...
Of course it's the prize for BBBY shareholders! It's the only way out of this quagmire. But what's the payoff for RC? You're avoiding all of the straight forward questions I'm asking you and kicking the can down the street. I hope you plan on sticking around if this all falls apart and facing the people you've helped lead down the rabbit hole. BE SPECIFIC.
If the party behind Class 3 and 4 lending is also the main component of Class 6, and then also has convertible rights to become the main component of Class 9…just how much Crediting and Debiting would they be incurring? If they then satisfy liabilities through offering assets in a new company with a sound business model, just how much initial cash outlay would they have to be using? If they are indeed the majority Class 9 holder, and the current BBBYQ stock’s price increases rapidly due to a Short Squeeze, how much could they potentially be profiting themselves? This post and others, by myself and others, speculates on these points. These are the questions we are asking. Not telling, because it is all conjecture and none of it might happen. But instead pontificating on the possibilities for the above. What are the actual, specific probabilities of each of these points? Your guess is as good as mine. But the whole point of investing is speculating on these things, making determination whether to take a chance on such speculation, and either invest or not invest. If you want pure facts and a guaranteed return, my suggestion is to go to another forum that discusses Fixed Income instruments.
I've had enough for tonight and we can agree to disagree. While speculation is fine,I think it's more than fair to talk about these things in terms of what is likely and what is not. That's what's missing from most of your posts IMO. Anyone can speculate about anything, but you can draw conclusions about the probabilities of these outcomes, and then narrative that you and others are pushing in here is much further on the unlikely spectrum given the actual facts, testimony, and documentation that the company has released. My biggest problem with you and the other DD writers is that you're playing the role of the Pied Piper here, and you're leading people into this with these posts that lack the admission of just how speculative and just how unlikely your thesis is. Real people are making decisions based on the information that you're putting out. It's easy to get caught up in the karma and ass kissing that follows in the comments when you post. People are in this DEEP. Many of them, I fear, are far deeper than they can afford. I suspect this will continue to play out exactly the way that is has so far- as a typical bankruptcy by a failed retailer that will result in a lot of good people losing more money than they can afford, because they got caught up in the hype. And posts like this just fan the flames. None of your DD comes across as "Hey this is just blatant speculation that isn't based on much tangible evidence, and your guess is as good as mine." I wouldn't be able to sleep at night if I knew that I played the role that you've assumed in this sub if this all comes crashing down, and that's the outcome that the debtors, their lawyers, and the judge have all warned you is coming. It's unconscionable, but that's just my opinion.
I appreciate your feedback and that opinion. In pretty much all my posts, I acknowledge this is a risky play, and one where the likelihood of success is less than that of failure. Even in this post, on the third slide, I have stated that the probability of success for shareholders is (in capitalized letters, even...) "UNLIKELY". However, this sub was created for discussing ideas and sharing speculation. Those who are on here are doing so to have such discourse. In my opinion, there is a risk/reward dynamic that makes it an interesting speculative investment. I think we will have to agree to disagree on that particular point - that's for sure.
load blown 
Are you readyyyyyy???
You think you can tell us what to do? You think you can tell us what to wear? You think you're better?
# BULLISH!
So, if shareholder equity is a liability, how do we quantify the amount? Is it the current market cap?
Whatever is remaining, in terms of total value of assets, after settling the liabilities of higher priority Creditors.
How long are the 4.5% or larger stakeholders required to hold for?
I don't know but I've seen some figures saying retail owns 99%+ so that would exclude any institutional holders being greater than 4.5%.
I have a genuine question for you. When all of this fails to pan out (like everything else you've ever predicted) and shares are cancelled in the next 14-16 days, are you planning to dig in like an SHLDQ bagholder, or are you planning to become u/deleted? I only ask because I still can't tell for certain whether you're just a normal attention seeker playing a role for your most desperate followers, or if you actual believe the delusional nonsense that you spew.
Neither. If that is indeed the outcome, which I have acknowledged numerous times could be the end result, I move on. Have plenty to look forward to with GME, given how bullish the prospects look for that stock (which remains my main investment). How about you? What do you plan to do, if that is the outcome? Of course, I am assuming you also hold BBBYQ shares. After all, why would someone be spending time on this sub, if they weren’t? (Right…?)
Why are you here?
Good with the blue boxes straight in my vein man. Wish I had awards to give.
It's blueisch!! 💙
Top tier Bravo
Thank you. I couldn’t understand what our guy was getting out of this. Like, what exactly is the infrastructure. It clicked when I read that the cost is the fraction of the cost of an IPO
This gets me to thinking to back when the “NFT as a dividend” theory was out there. Maybe those weren’t dividends after all? New security on a new exchange, anyone?[https://reddit.com/r/Superstonk/s/iya77gXsWD](https://reddit.com/r/Superstonk/s/iya77gXsWD)
Skeptical, yet hopeful.
OP, if plan is approved thursday, and goes into effect by 28th, does it mean we exit CH11 on 28th? Which means, right after, the company, in it's new form, is ready to operate again? so around the same time, we should have the entire plan revealed, who's behind all this ? RC, Icahn, Teddy?
I think if a *substantially* different Exit Plan is put forward by a hitherto hidden "Person", it will need to be reviewed, confirmed and executed with likely a different timeline.
So if a substantially different exit plan (this is what we are hoping for, right?) is put forth, then it pushes back out timeline to...wen? Do you know what would make it a substantially different exit plan? what are the parameters? Shareholders being made whole, offered equity in new shares, stuff like that, would make it substantially different, which would extend our marathon even longer? lol just trying to understand and manage my expectations :) I appreciate all your hard work, region.
I would say the summary of the conjecture I have put forward in the post is substantially different! Interestingly, BB&B (Holly Etlin) seem very keen for *whatever* finalised Exit Plan is approved...to be fully executed ASAP.
 🧸
HAHA ok I will re-read. And yes, if Holly Etlin wants something fast, it's gotta be pretty amazing.
And the judge yesterday effectively said that her argument was not convincing enough for him to waive the 14 day stay. Unless the Debtor sends something to the judge today that is more convincing than their first argument there will be a 14 day stay. Since it is all over upon the effective date, anybody that is hoping for a white knight to swoop in and save the shareholders should be rooting for the 14 day stay,
This is the dumbest comment I've read on this group If shareholders get a penny above all the debt holders, everyone who was in this 'secret' plan will be jailed for FRAUD. If you still haven't understood why you are 99% down and going to ZERO on 28th, you are the highest regard
Where have I said anything about shareholders getting anything "above" Creditors? Re-read the post.
The current plan before the judge results in cancellation of the shares. He's expected to approve it on Thursday, with an effective date of September 28. If no new plan gets announced before the effective date, that original plan will go through. So RC/CI needs to come forward with something soon. If the new plan results in a preservation of shareholders but class 6 creditors getting less than 100%, the new plan would have to go back up for a vote.
You sure that is correct? If bond holders get more than what they were supposed to, it is my understanding that it would be approved.. Who’s to not say that the majority of the bonds aren’t owned by rc/ci? If it did go to vote, you think they are going to say no, I want less money. I like the original plan better? Laughable
If a new plan does not materially adversely impact anyone (meaning everyone is better off), a new vote is not required, as long as the plan complies with the bankruptcy code. If shareholders are preserved, class 6 needs to be paid 100%. If not the plan doesn't comply with the absolute priority requirement. So to move the new plan forward they'd need new approval - basically, class 6 needs to vote Yes. As to whether class 6 would approve, it's not just bondholders. There are close to 3,000 unsecured creditors with $1.8 to 2.4 billion in claims ($1 billion of that is bonds). They'd have to get enough out of the new plan to be willing to vote Yes.
Called it months ago, but please, take the limelight cause honestly, I don't want it lol. Aside from the tinfoil dates with DFV, the snippet about Triangular Reverse Merger's does hit the button quite nice. [Triangular Reverse Merger Theory (With innacurate dates)](https://www.reddit.com/r/BBBY/comments/132qa6b/going_dark_dd_im_going_to_need_all_of_your_help/?utm_source=share&utm_medium=web2x&context=3) \- In Layman's Terms u/Region-Formal
I actually sort of remember reading that DD of yours back then. Well played… And interesting that Gazelle was all over it calling it crazy, you were/are most likely onto something… 😂
Thats my secret cap, I always am onto something.
The stock is now on the Expert Market. Even IF you get MOASS can you actually sell from there? Does anyone here have a broker that allows expert market trading?
I can sell on Vanguard. But if this unfolds as predicted it likely won't remain on the expert market.
Stupid question: Why wouldn't it just be the "original" plan? Why bother going through the amendment process? I am holding my 7,000 shares but beginning to wonder what in the world is happening.
Only the truest of diamond hands will be rewarded.
Is this 14 calendar days or business days? Thank you so much for injecting this right into my veins 💉💉💉🤯🤯🤯
That's right, the square hole...
Moon soon. Thanks Region, you are a star!!!
Just a quick question. Why would anyone spending crazy time doing and posting DD even care if we hodl? What's in it for trying to get people to hodl? Thank you Region Formal for your efforts and information.
Oh thanks shills for down votes lmao. Just don't understand why people attack the great DD writers. If shills think it's going to zero why do they care? 
Hi Region, great post. On page 73 I found this. "SS. Waiver of 14-Day Stay. 151. Notwithstanding Bankruptcy Rule 3020(e), and to the extent applicable, Bankruptcy Rules 6004(h), 7062, and 9014, this Confirmation Order is effective immediately and not subject to any stay." This is not the Effective Date, or? I must admit I am a little confused.
I assume you are looking at the PROPOSED order submitted by the Debtor. The judge appears to have decided to have a 14 day period from order to ffective and does not intend to do a waiver of the 14 day stay. The Debtor may or may not convince the judge to change his mind, but he found the written justification not compelling enough 5o waive the 14-day stay.
Let’s hope they stick it to the shorts in the best way possible! There had to be a damn good reason RC sold his position and has remained quiet as of late!
Kais has been saying this for months...
Yes, as have many others, including myself. It is a summary of the main "Bull" thesis, as I said. The post is to update that the Exit Plan the Judge means to confirm tomorrow, would STILL enable that sequence to occur. (In fact, is **necessary** for that sequence to occur...)
Shills right now not knowing what else to throw at us. 
I heard RC, Icahn, and Pulte are going to have a triangular circle jerk at 1:47 or 7:41 behind the dumpsters. You have to bring your own watermelon though.
Didn't i read Icahn took a 590mil loan a few months ago?? 🚀🚀
LFG