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Microcap & Penny Stocks : Fonar - Where is it going? -- Ignore unavailable to you. Want to Upgrade?

To: telephonics who wrote (19098)	2/25/2004 11:37:29 AM
From: FRANK ROSSI	Read Replies (1) \| Respond to of 19354

MANY HAVE SAID , That Wall Street KNOWS how to value co.s . That Wall Street will NOT DO business with a co. like Fonar . That Banks will NOT DO business with a co. like Fonar . That Institutions will NOT PAY attention to co.s like Fonar because Fonar doesn't care about their stockholders . Well Folks take a look at this . NEW YORK (Reuters) - Adelphia Communications Corp. (Other OTC:ADELQ.PK - News), the bankrupt cable television company whose former leaders are on trial for fraud, on Wednesday said it filed a plan to emerge from bankruptcy later this year that includes $8.8 billion in arranged financing. Adelphia, which submitted the reorganization plan to the U.S. Bankruptcy Court for the Southern District of New York, said its proposal includes a variety of distributions in cash, preferred shares and common stock as well as interests in a litigation trust for its various creditors, shareholders and litigants. The Rigas family, the company founders whose fraud trial began earlier this week, will receive no payments from their equity stakes and other claims, said Adelphia, the No. 5 U.S. cable operator with more than 5 million customers in 30 states and Puerto Rico. The plan's filing is expected to touch off a battle between Adelphia's new management, appointed after the Rigas family resigned amid fraud charges, and Adelphia's shareholders, who charge that the plan will enrich creditors and bondholders at their expense. The plan provides slim prospects for recovery for shareholders, allowing them to participate in a litigation trust to pursue claims against the Rigas family, Adelphia's former auditor Deloitte & Touche, and the financial institutions that lent money to the company and the family. Adelphia founder John Rigas, his sons Timothy and Michael, and Adelphia's former director of internal reporting, Michael Mulcahey, are on trial in U.S. District Court in Manhattan on charges they stole millions from the company by taking out co-borrowing loans for personal business and to cover margin calls on Adelphia stock. The proposed reorganization plan values Adelphia at $17 billion, compared with about $23 billion estimated by the shareholders. The current management has said they plan to operate the company upon emergence from bankruptcy. A committee representing the equity holders has said it would like the company sold off to recover some of their investment. Upon emergence from Chapter 11, Adelphia estimates it would have approximately $8 billion in debt and an additional $750 million revolving credit facility. JPMorgan Chase & Co., Credit Suisse First Boston, Citigroup Inc. and Deutsche Bank AG will lead the financing package, which is subject to bankruptcy court approval, Adelphia said. Well Folks not only didn't Wall Street know how to value this co. properly to begin with they are willing to give it another try . And Not only did Wall Street do business with this co. they want to try it again after Adelphia emerges from Bankruptcy . Not only did Banks do business with this co. in the past they are willing to doit AGAIN to the tune on $8.8 BILLION DOLLARS . Telephonics has always said Fonar is like ADELPHIA . INSTITUTIONS will not take positions in Fonar because Fonar doesn't care about their stockholders . Well Tele HOW SMART were those INSTITUTIONS that invested BIG TIME into ADELPHIA . Those INSTITUTIONS are going to take BIG LOSSES from those investments .But you know what the SAD PART IS Tele AFTER ADELPHIA emerges from BANKRUPTCY some of those very same INSTITUTIONS that bought ADELPHIA before will DO IT AGAIN . Maybe Dr.D. should put Fonar into Chapter 11 then maybe they will be IN LINE for their $8.8 Billion Dollar Bank Loan . I always heard that Bankruptcy was a BAD THING . But Wall Street makes it look like a GOOD THING . Go Figure .