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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (23943)	6/18/2003 4:14:51 PM
From: aerosappy	Read Replies (1) \| Respond to of 206325

PGS after Chapter 11 ("Pre-Packaged BK") -- For analysis purposes, assume that there will be 100 million common shares after the BK plan is approved. Ownership of the shares will be as follows: 5 million shares to holders of PGS Trust-I (i.e., the so-called "Preferred" Shares) 4 million shares to existing PGO common shareholders 61 million shares to creditors who select "Plan B" The remaining 30 million shares require the shareholders thereof to put up $85 million cash (equals $2.83/share). These shares will be split -- [A] 7.5 million shares to Umoe and the other Big Boys [B] 22.5 million shares to existing shareholders who are willing to pony up their pro-rata share of $63.75 million (75% of the $85 million). If existing shareholders do not want these, then Umoe, et. al., will underwrite ("buy") shares not exercised by existing shareholders Accordingly, existing PGO common shares have a total value of about $15 million (or about $.14 per share). This assumes that the common shares will be worth $3.00 each, and the existing common shareholders will get 5 million shares. Existing PGS Trust-I shares are worth 17.4% of par value, or about $4.34 per "preferred" share.

To: jim_p who wrote (23943)	6/18/2003 5:03:33 PM
From: aerosappy	Read Replies (2) \| Respond to of 206325

<<Accordingly, existing PGO common shares have a total value of about $15 million (or about $.14 per share). This assumes that the common shares will be worth $3.00 each, and the existing common shareholders will get 5 million shares.>> Another approach to valuing the common and preferred is to view the March 31, 2003 balance sheet and adjust for the BK changes-- Reported Assets = $2,938.1 million Reported 3/31/03 Liabilities = $2,797.5 million 3/31/03 Preferred = $179 million Total liabilities and preferred at 3/31/03 = $2,976.6 million After the pre-packaged BK, the total liabilities become $1,683 million and collateralization preferred = $36.5 million. Assume that the assets are reduced by BK slippage and payments to creditors, and that post-BK assets = $2,819 million. In this instance, the assumed 100 million shares could have a post-BK book value of almost $11 each. If so, then the current PGO shareholders who get 4 million shares (plus the right to buy more shares from the creditors) have a tranche worth about $.45 each share (plus more if they are willing to put up more cash to buy more stock).