RE:RE:RE:you must be crazy to BUY CXR now, why?PROtrading wrote:
No politician is going to support price gouging. They will all support generic competition. Both will "encourage" the FDA to continue to fast track the generics and revenues on CXR will continue to plummet.
The only thing shareholders can be assured of is zero equity on common shares. Bondholders might get 50 cents on the dollar but with assets offshore and liability here, well.... Bondholders are invested in a flaming dumpster.
Cinven has too many hooks into AMCo, they got Concordia bagholders to pay off all the debt owned on it and they'll reclaim it debt free by February or sooner. Nobody knows what happens on non-payment right? Pretty clear they don't have the cash to pay for the $200M due this coming month but what happens if they can't pay the 50% they can defer? Add that possible $72M "4 drug third party finder fee" overhand and wow, over-priced and price gouging just doesn't look like a hot business model!
I'm sure the $9M pay CEO will have deep regrets on this as well and when his company is worthless, he'll have a nice nest egg now that all his shares are offshore.
First of all the 72 million finder fee is a non issue that has already been addressed, it was not triggered. Second of all Cinven cannot takeover Concordia there is a clause in the purchase agreement to prevent this. If Concordia cant make the payment and has to declare bankruptcy then thats a different story. You have sure put a lot of faith in politicians to actually follow through, I guess Hilary and Donald are the honest trustworthy politicians that don't just make promises to get elected. Sure the drug pricing scandal will have an affect on Concordias pricing strategy going forward but I don't think it will be as dire as you hope.