S&P Report of Ginn Chapter 11 Filling an Error. Report Revised.
S&P amends report after GoToby.com questions discrepancy between S&P report and Ginn Company’s disclaimer.
Palm Coast, Florida – October 6, 2008 – Several GoToby.com readers sent me a copy of a Standard & Poor’s report which announced the withdrawal of its recovery rating on the $675 million Ginn-LA/Credit Suisse debt. The stated reason for the withdrawal was "Subsequent to the company’s Chapter 11 bankruptcy filing, we determined that we would not have access to sufficient information to continue surveillance on the company’s recovery ratings." Before posting the report, I asked the Ginn Company to comment. The company replied that there was no such filing.
I obtained the full report which contained the contact information of the S&P analysts and alerted them of the reporting discrepancy over the weekend. Early this morning, their analyst informed me that the reference to Chapter 11 Bankruptcy was an error. The report has since been amended to state, "Subsequent to a payment default, we determined that we would not have access to sufficient information to continue surveillance on the company’s recovery ratings."
Ginn missed June 30, 2008 principal and interest payments on the loans. A 30 day forbearance period granted by the lenders has expired. The company reports that negotiations between the two parties continue.
Ginn report
Dear Don, Maybe your are just reporting the future. Keep up the good word.
Professional Regards,
Danny
Filing takes time
The Federal Voluntary Bankruptcy requires the listing of all entities to be subject of the courts consideration. The owners must be listed, the debts known, the assets, and the selection of what chapter they are filing for. The convoluted set up of the many Ginn properties would take a group of Bankruptcy lawyers months to put together in a formate the courts would accept. That may be what’s going on hear. In the mean time reports of the assets are being offered to the debtors directly by Ginn to stave off the forclosure process. The SEC has given up on trying to analyze the stock corporations, probably due to the many reports of assets being a lot less than book value. True transparency will be required by the courts before they will consider a Chapter 11 Voluntary filing as acceptable and therefore ready for resolution. A court appointed receiver will be put in charge of the day to day operations of the accounting until all is resolved. The cost to do the filing is in it self reason enough to think twice about doing it, not to mention the ego crush of failure. If the real estate ballon hadn’t happened, the Ginndom wouldn’t be falling as fast.