Any comments on this analysis? Interested in the WCOM bonds if the likely settlement comes out around 50ish (now 35).
This from Debttraders.com:
Report Data for
Worldcom Inc-Worldcom Group
Report Brief
WorldCom's (soon to be renamed as MCI, Inc. and referred to in this report as "MCI", or the "Company") bankruptcy is coming to an end, however, it is currently being held by objections by a certain class of trade creditors. We believe these objections will be resolved in the next two weeks paving the way for the Company's Reorganization Plan (the "Plan") to be confirmed. The bottom line is, however, that we see no impact to bondholders regardless of the settlements of these objections. In this report we have outlined details of the objections but do not believe they are significant and believe this bankruptcy is nearing completion which may be immensely positive for bondholders.
We continue to reiterate our STRONG BUY recommendation on all WorldCom Senior Notes with maturities ranging from 2003 to 2031 and Intermedia Senior Notes with maturities ranging from 2007 to 2009. We maintain our BUY recommendation on the MCI communications, Inc. ("MCIC") Senior Notes with maturities ranging from 2004 to 2027 and Intermedia Senior Subordinated Notes due 2009. Our recoveries for the WorldCom and Intermedia Senior Notes remain unchanged in our Base Case from our previous Distressed Review dated October 7, assuming distribution to claims is received all in the form of New Equity (equity to be allocated subsequent to the Company's reorganization), at 51.8% and 135.8%, respectively. These recovery values present an upside of 45.5% and 46.0% from current Senior Notes prices of 35.63 and 93.00, respectively. This is attractive.
Analyst: Alok Makhija, +1 212-247-5300 |
