Re: it is far from certain that BK is inevitable, much less that BK would necessarily wipe out the current shareholders.
Are you smoking something illegal? The debt is trading at $.15 on the dollar. Guess what that means? The bond-holders are placing the value of the company at ~$6B post liquidation, debt->equity swap, or whatever ends up happening. There is no way in Hell that post-bankruptcy the stock-holders will be left with anything (caveat : maybe they will be allowed .01% of the company if a debt->equity swap instead of a fire-sale is the final outcome). If you think this company has a prayer of surviving in any form, you should buy the distressed debt, which would still give you a 600% return IF the company is actually worth as much as the debt (which is, of course, highly doubtful).
On the other hand, just grasping at fleeting wet-dream scenarios to avoid having to mentally write off your investment in this company is a long-term-futile exercise.
Regards,
Eric K |
