RE:RE:Distressed Debt: The 7% Unsecured notes are 30.5... GULP!!The coupon is 7% buddy.
The yield is north of 37%. You should spend some time in understanding how the debt market works.
Some would disagree with you that the bondholders can do "nothing" That is why everyone has lawyered up. The unsecured bondholders have secured Akin Gump to represent them, and if you are an equity holder you have been turbofuccccked.
meetoo1600 wrote: It's not because of fear of fear that the company is going bankrupt. That will not happen anytime soon. It's because they are locked in until 2023 at 7%. As long as Concordia pays the interest, these bondholders can do nothing but wait until the bonds become due, and that is a long time to be stuck with a 7% yield when equities and other potential investments are or can do so much better. The discount at which they trade, and the corresponding yield is primarily due to the lack of liquidity.