Cash Its not clear to me how much short term cash cmk is getting. Is it 7M less the 2.5M in interest less the 2.5 M fee or is the 2.5 M fee financed with new bonds. I got a headache reading all the fees clien has to pay. Its always bend over when you run out of cash.
The bondholders are basically forcing us shareholders to buy them out. The first 25M they are owed takes over half the company via equity. If we want to maintain some level of holdings we need to kick in 35M which will goto pay for their 2nd 25M plus "fees". Nice 10% underwriting fee there also. The bondholders get paid out plus own over half the company.
The conversion value seems quite low. At 240M shares its a 30M company or much less than half of bookvalue. Would have been nice to see mgmt changes but the bondholders will not own the company until mar or april.
I would have liked an option to avoid dilution to be the sale of coal or improvement in markets. Instead its a sale.
Should have sold jan 2011.