Weren't there something like 3 billion shares out? If so, then it's about 8 cents worth of new shares per old, not counting the cash portion of the settlement (the $500 mil previously announced). But what is unclear is who gets it. Those defrauded were those who owned it prior to when the news broke and the company filed BK. Those buying it now have not been defrauded. Deluded, maybe, but not defrauded. ;-) The thing to note is that this is cash and new shares set aside to pay securities fraud claims, not a portion of the news shares to be distributed in exchange for old shares in the reorg. That's the way I understand it, anyway, and I haven't read anything more than what's been in the press lately, which is usually much less than clear. But if my interpretation is right (and assuming the now $750 mil pool isn't somehow consumed by lawyers and the SEC, and is actually distributed), it looks like it's adding up to as much as about 24 cents per share (based on 3 billion shares, again).
Anyone else have a different interpretation?
Bob
PS: I feel pretty safe in assuming the officers and directors - at least those implicated in wrongdoing - aren't going to be eligible to make claims. |
