GREY:LSTMF - Post by User
Comment by
orlandoflon Jul 25, 2016 10:31am
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Post# 25081238
RE:RE:Who is going to lose more?
RE:RE:Who is going to lose more?emmitt wrote: If there is no deal shareholders will get 0, debt holders will do better. Debt holders wil get the entire pie and leave shareholders with 0. Shareholders should want this deal, at least they will get something.
Wright was thinking that shareholders and unsecured bond holders would grudgingly go for it - if they don't they might get 0. He mentionded that unsecured debt holders - many of them bought debt at much lower prices - some higher but lots of at lower prices. He thinks there is a chance that they'll go along with it as they might not get anything with an auction of the company. Secured debt holders may offer around $900M or $1B covering themselves an leaving nothing for unsecured debt holders. Would they give anything to stock holders? Unsecured would be 0 in that case if that was the high bid and stock holders would be a the mercy of high bidder if they gave them antying or not - options exercised would bring more money into the company.
I got out and went with other investments.