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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (17910)	10/12/2003 7:30:24 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 18998

I think he is referring to "new equity" issued to current bondholders (see his post), as a result of the Ch.11 process. The bankruptcy plan (see 8-K) shines a light on the question whether the old equity - the currently traded stock will be totally voided. In this case a small distribution will be made - see below. See: biz.yahoo.com The Plan, if consummated, will result in a reduction in debt of approximately $600 million and $150 million of new equity invested in Magellan. If the Plan is approved by all classes of creditors, all aspects of the Plan can be implemented, including provision of 1.3% and 0.3% of the new common stock in reorganized Magellan to the Company's existing preferred and common stockholders, respectively, which would not be permitted if the Plan were to be approved over the objection of any creditor class. In other words, should one creditor dissent then the common equity receives 0, otherwise 0.3%. Since the plan has been approved, the distributions appear to be in effect as per following company 8-K: biz.yahoo.com The existing common stock of the Company will also be cancelled and the holders thereof will receive 49,637 shares of Ordinary Common Stock, representing approximately 0.3% of the equity of reorganized Magellan on the Effective Date (after giving effect to the issuance of such shares, the Equity Offering and the Onex Investment but without giving affect to the reservation of shares for issuance pursuant to the warrants and for management compensation purposes referred to herein), which equals approximately 1 share of Ordinary Common Stock for every 712 shares of existing common stock, as well as warrants to purchase until the seventh anniversary of the Effective Date for $69.46 per share a like number of shares of Ordinary Common Stock.