Revised book value calculation based on post from Lightfoot below that our common stock was cancelled and will be converted into 3% of new stock. 3% of 10M new stock = 300,000 shares. Our old stock would effectively go through a reverse split of 1 new share for every 66 old shares. If $152M/10M = $15.20 book value/share. If include 15M preferred, $152M/25M = $6 book value. Book value based on old common = 0.22 (10M) or .09 (Including preferred). This isn't so bad!
The stock is trading in its book value range, but it has a totally new balance sheet with little debt and potential interest of Sprint as a takeover target. I think this company is going places. I may pick up some more to round out my converted shares after the new shares base at a good price. Plus with a share price over $5 and a new balance sheet, I think this will qualify for a Nasdaq listing.
From: lightfoot (3/31 post on thread ASK: "THE LAST DON" OF MOMENTUM TRADES)
HARTQ, did you look on yahoo? Bankruptcy 1 Shareholders zip nada!
From this filing! sec.yahoo.com
On October 6, 1998, the Company announced that it had executed an agreement with the holders of a majority in principal amount of the Senior Notes to support the Plan of Reorganization to be filed under Chapter 11. Under the Plan of Reorganization, all currently issued and outstanding common stock and other equity interests of the Company (the "Old Common Stock") will be canceled. Holders of the Senior Notes
will receive 97% of the outstanding common stock of the reorganized Company (the "New Common Stock"). Holders of the Convertible Notes, Old Common Stock and certain litigation claimants will receive the remaining 3% of the New Common Stock,plus warrants to purchase up to 10% of the New Common Stock on a diluted basis.
The Company intends to implement the Plan of Reorganization by filing a voluntary petition under Chapter 11 as soon as practical. The Plan Support Agreement, which originally expired on November 13, 1998, has been extended through December 4, 1998, or such later date as the parties may agree. There can be no assurance that the Plan of Reorganization will be consummated in a timely manner or at all. |
