STEVE, to try to answer some of the questions..
i can't see anyone buying this stock after the filing..so, it should trade at fifty cents to nothing..
but, it was about fifty cents monday.
tuesday we should see it go lower, unless some one sees somthing ..
now the only lining..and i am not sure it will be rational..just figuring..maybe some folks see a value of fifty cents times , about 70 million shares are worth , say 20% of the company.
suppose the bond holders get the remaining 80% or, 560 million shares..
now that makes 630 million shares toatal.
reverse split it for simplicity ..and we see 63 million new shares.
so that makes 63 million shares with the common at stock selling for five bucks..now we go back and see the numbers.
that makes the company worth about 300 million bucks.they owed about 900 million, give or take 100 million,,
so they wipe off about 900 million in debt, have a value of 300 million.
means someone ate 600 million in loses.
now, stock holder would have a fifty cent stock selling for five bucks at one for ten
the bond holders would lose their 900 million in bonds for 560 million shares converted to 56 million shares in the reverse split.
will bond holders accept shares for stock.i think they would.
remember, i am out here so i have no idea of the major bond holders thinking as to what they could get..
but, it would clean off the debt, create a clean company going foward
would it be good? any idea seems good
of course bond holders lose their money and interest for the stock..but, it seems a good deal in these cirumstances.
so the question was, i almost forgot..
why fifty cents for the stock..
at fifty cents the aove is an idea
if we go to ten cents tuesay, it means scarch this idea off the books.
but, i so think..most of the debt was bonds.
the filing menas closing crapy stores, geting out of leases, cutting debt from 64 million in interest payments to zero
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