In the Confirmation hearing?
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The valuation is a big problem for Lawler.
In February of 2020, CHK representatives were peddling a completely different set of numbers concerning valuation at Investor Conferences.
To an onlooker, it appears CHK churns out whatever numbers it needs for valuation—including numbers that contradict each other.
It promises to be a big problem next week in Judge Jones court.
Many people care.
The week started with the judge reading a letter from a bondholder who stated that it was all he could do not to commit s–c-de on Christmas Eve. Apparently, he lost all of his and his family’s money believing in Chesapeake. It was heart breaking. That’ll learn him!
The CHK expert on the enterprise valuation, Miller, testified that he has never valued an oil & gas company before and that he has never testified as to the value of an exploration company in court before. His testimony went downhill from there.
Miller works for a company, called Intrepid, that is a partner of Investment Bankers, Rothchild. They worked on the valuation together. They also are splitting a 20-million-dollar fee that is in addition to their hourly fee.
The original Restructuring Agreement provided for the unsecured creditors to get 1 million dollars to split, an amount that is 1/9th of Lawless' bonus for bankrupting CHK. In subsequent versions of the RSA the amount was raised to 10 million.
So, the Brain Trust originally agreed to pay 2,000% more to people conducting a rigged valuation, which shorts the unsecured creditors and shareholders, than to the unsecured creditors and shareholders owed billions.
What do I mean by rigged? Bought, paid for and in the bag. It has nothing to do with reality but it will serve Lawless’ purposes.
The valuation, by my reckoning, is a joke. It will prove to have been wildly inaccurate.
The fireworks will start big time when the Unsecured Creditors start calling their witnesses.
No one cares.