Ron
I must have missed something. They proposed a restructuring that essentially gives the company to Telmex, Fortsmann Little, and the existing preferred shareholders, and takes out most of the debtholders at something like $.11 on the dollar. It dilutes the existing common shareholders almost out of existence. In all of that, I have not heard them talk about bankruptcy. Maybe they have told some folks that if you don't go along with our plan, we might have to file bankruptcy. However, with $1 billion in the bank before this all started, I would think that a bankruptcy judge might tell them to go back, try a little harder, and file chapter 11 when it is more imminent. The fact that they are going on the OTC doesn't have a lot of bearing on whether they will file bankruptcy or not IMO. They are going on the OTC primarily because when a stock trades below $1 for any length of time, it gets de-listed from the NASDAQ. The OTC will be a lot less liquid than the NASDAQ, but it doesn't matter, because when you rape your common stockholders, by definition your stock becomes a lot less liquid - a lot fewer investors want to touch it. Again, just my opinion, and please don't buy or sell this turd based on it. |
