RE:If bonds are trading for 50c on the dollar fundtrader wrote:
debt is chopped by 50% so total debt is less then 1.5 billion and assets close to 5 billion..so in that case equity goes back up to 3.5 billion$ or 70$ us a share..i might be totally right in theory... big money comes in buys the debt for 50c on the dollar and takes over the shares for a resonable premium acceptable by all. If the shorts think this is going to 0 then obviously they will take 50c on the $$ rather then nothing...one way to financial engineer this is to reduce that debt by 50% and give them higher interest rate. I remember a lot of shipping companies did that a few years back and the shares went up 10 overnight.
naive in the extreme - any turnaround and the bonds will be first to recover. once demand for the bonds goes up they will return towards parity. Obsessing over concordia means missing out on other opportunities. Noticed you were posting on nobilis - you seem drawn to disasters in progress...........