Why would anyone buy the Notes when bonds are near junk?This company makes no sense. I don't follow it that much except that I was long, tried to catch the bottom for a second time and bailed. I was one of these guys who really thought the short sellers were the evil players here. Glad I followed a little voice, I would have been burned bad chasing the bottom here and lower.
This is just a horror story getting worst. I hope nobody gets fooled with this futile cash grab attempt!
Effectively, it means that instead of shareholders being like a second mortgage lender, they drop to a third level mortgage lender. Note holders join the bond holders holding the bag on this high debt/low asset company in a shrinking market. Both in front of shareholders. I can't see how the common stock would go up given some shareholders might simply sell the unsecure shares and place their bets on the notes.
Why would any new money chase this knife of a company down to oblivion! We will only see lateral movement. Money is not that dumb.
The only place to be is on the side here watching. Unless you like the thrill of unexpected turns on this nasty rollercoater. I'll watch here to see how the various "players" do.
But I'm pretty sure it's easy to see the cliff from here.