Like you say HV, there's no reason Delphi have an advantage over other SH's, other than they have vast quantities of capital at their disposal.
Mercuria are the big problem here, they are entitled to appoint receivers over the top of the administrators (FTI), it looks like they are owed around $55m and there is currently a hedging asset of something like US$16m. Depending what cash is remaining from the recent raise they may be able to get out unscathed. If FTI can convince Mercuria not to call in receivers then that will be a positive and job 1 done for them.
I think the best and most likely hope for any return for SH's is a DOCA and getting X cents in the $ but I wouldn't expect that to be anymore than 5 cents as the suppliers/creditors are always offered a better return as it's these guys that vote whether to accept it.
In terms of what would be offered for the assets (assuming unencumbered by debt/suppliers/creditors), who knows but it certainly won't be anywhere near the $300m, if I had to have a total guess I'd say $100m maximum.
I've been through this before and found the best way was to assume as a SH all the value had gone, which in my case was the end result.
GL all, hopefully LTI can perform some magic for everyone.
WMC Price at posting:
20.5¢ Sentiment: None Disclosure: Not Held
