SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : General Magic
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Carbo who started this subject9/7/2001 5:10:24 PM
From: dgurgel  Read Replies (1) of 10081
 
The possible delisting of GMGC early in November, brings on an end-game not unlike that being played out on a much larger scale at ATHM. At GMGC some preferred shareholders have a contractual right in the event of delisting to claim recovery of their original investment plus a premium. However, upon any massive assertion of such claims (valued according to some at more than $14 million) GMGC would be insolvent and could not (fully) pay the claim. At ATHM, the threat of declaring bankruptcy is forcing the holders of similar potential claims to rethink their strategy.

There may be no way out except for a renegotiation of terms that leaves holders of lower classes of equity (like all common stock) greatly diluted.

Many preferred holders already may have shorted, then converted to cover, and now have no position. Those who have not converted may be in a tough spot unless they have hedged (likely I think) with short positions.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News