RE:selling stocks to private firm is not god ideaI would have to agree. I can't find a scenario where this option makes any sense to benefit common shareholders. It makes me think things are more desperate than they were letting on.
mingzhu wrote: minority equity, say 20%, only have 10 m *$6=60 m. It make no meaningful reduction of 3.2 b debt,merely 5%. unless CXR is priced as bankcruptcy, private money infusion makes sense. $6 is not bk price. The market got it wrong today. This deal only make people believe that it can pay normal due payment of debt. i believe market will correct itself.