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Microcap & Penny Stocks : Qurate Retail -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (46)	8/12/2025 10:20:52 AM
From: Sean Collett	Read Replies (1) \| Respond to of 85

Morning 60, I am not sure we should be calling it a "limited condition transaction" as we cannot be sure that's what happened. While TJ may be correct it is a possible way to draw these funds, it's not the only way. Like I wrote, this could be prearranged DIP financing and we have no visibility into that today as it would be between the company and syndicate. If we put ourselves in the bankers shoes protecting capital is where they are and letting a company with falling EBITDA draw $2.9B on their dime would make sense if they were given security via super priority in postpetition. Now as for timing, my view is we would see some news in a few weeks. Company is already spending on two firms and likely reimbursing on four others + $100K a month spend on Roger and Carol. Cash burn here is indeed real and the company itself burned $156M in six months alone. Just comes down to which situation we see unfolding LME, prepack, or freefall. If they can get a prepack done that usually takes 45-60 days and without factoring holiday's in we're at 55 business days right now since the May 28th reports. No live Q&A is a normal response prior to filing something so this was a tip something is in the works. Coupled with the $975M draw after quarter reporting. Now the notion of a holdout is why I do not believe an LME or some friendly debt move like TJ proposes is likely. Even if they gave friendly cash terms like what I propose below to get 50.1% consent on each group, that leaves far too little cash to run the business. Meaning they have to offer less and thus the holdout problem grows and makes a full LME less likely to succeed. These folks have senior secured status with QVC, Inc equity as collateral so why walk for less? Worth noting too in that 2027/2028 exchange offer they did not all went for it and thus why we still have $116M to deal with - holdouts will likely be a problem. If a friendly liability management exercise for QVCGA is off the table then that leaves prepackaged chapter 11 which could be fast and announced in a few weeks. If they can't get all bond holders to play here then we move to freefall and then you would be correct we likely see no restructure by EOY. I do not believe you are looking for a zebra, but our Substack poster is. These moves being written about are indeed rare ones and in the world of distressed debt expecting these types of plays by a company now losing on a FCF basis is to be unlikely. In the medial field there is a reason doctor's do not recommend full body scans. Outside of the radiation exposure, you will likely find 2-3 things on the scan (e.g., a shadow or a benign cyst) that lead to more testing, discomfort for the patient, and costs. In the end what was found turns out to be nothing. I believe this poster is running a full body scan on these agreements and finding his 2-3 things and running tests on them. Plethora of data on corporate distress would indicate he is unlikely to see the results he is looking for. Thus, a zebra in Delaware. We are paid on probabilities and what he writes about gets the common holders underwater excited, but I find this to be highly unlikely. The math I broke down here would indicate the interest savings on QVC, Inc debt isn't near enough and doesn't address the elephant in the room - secular decline. We will see where she goes in the next few weeks. Happy investing, Sean