last thoughts this evening.
the seq questioned their past reporting so they were not able to do a deal for the bonds or sell the bagel investment, or sell property they owned. that left them with a baloon bond payment due in octobe, i believe was the time frame.
this way, management gets to submit a plan of reorganization to the courts..
usually, the court agrees with management .the key is to get the key bondhlders to agree with the deal.
so both sides have leverage. the company to perserve some value for the stockholders
the bondholders to get the major share.
now usually it bitter as they have bones to fight over.
but, just my opinion and its worth only what its worth as expression on the board, not to inply buying or selling, just conversation...
the company will wind up with the stores, the bagel operation, their real estate, and no debt..what is that worth??
i have no idea.
the catch is, the 900 million debt has to be converted to shares , even if worth , say 30 cents on the dollar in stock, to make it work.
i think the bond holders would be happy with this sort of a deal.
also, i think mangement watns that 10 perecnt of the new company for the stockholders to perseve a sense of something.
remember, the common stock holder lost heavy
the bond holder lost heavy
the only winners will be if they were to be players from here going foward assuming someone bought the stock or bonds at these levels.
but again, we have to go back and see if any other big bucks are owed that have to be added into the equation.
LAST THOUGHT, i am not recommending buying or selling
i own the bonds and do not own the stock
i wll lose, but if i get converted to stock from my bonds i will just become a stockholder..of course the bonds are worth a lot less.
in fact, i have to go look up and see if they are selling for anything.
like the common stockholder the bond holders have to see what the big players have in mind to do about bost |
