<<Accordingly, existing PGO common shares have a total value of about $15 million (or about $.14 per share). This assumes that the common shares will be worth $3.00 each, and the existing common shareholders will get 5 million shares.>>
Another approach to valuing the common and preferred is to view the March 31, 2003 balance sheet and adjust for the BK changes--
Reported Assets = $2,938.1 million
Reported 3/31/03 Liabilities = $2,797.5 million
3/31/03 Preferred = $179 million
Total liabilities and preferred at 3/31/03 = $2,976.6 million
After the pre-packaged BK, the total liabilities become $1,683 million and collateralization preferred = $36.5 million.
Assume that the assets are reduced by BK slippage and payments to creditors, and that post-BK assets = $2,819 million. In this instance, the assumed 100 million shares could have a post-BK book value of almost $11 each.
If so, then the current PGO shareholders who get 4 million shares (plus the right to buy more shares from the creditors) have a tranche worth about $.45 each share (plus more if they are willing to put up more cash to buy more stock). |
