RE:RE:RE:RE:RE:how high will this get when this gets sortedThey have two huge earn outs commited to payable on December 16th and February 2017 or else AMCo will be deeded back to Cinnven debt free. Plus Thompson's two year severance. Plus New CEO's comp. Plus interest on the notes due mid Dec. Plus the two bridge loans they have to pay by October 2017. Plus all the money to fight the Class Action Suit that is amping up. Plus declining revenues on all their off-patent drugs. At least it looks like Valeant has something they can sell to reduce their debt. The capital structure of Concordiia sucks big time for equity holders. Shorts are waiting for the prepack announcement from the sounds of things in other forums.
greatplay wrote: Shane, you are a bit wrong, it works this way in normal bankruptcy, but in our case, Concordia was capitalized with $330 MLN in addition to capital on-hand.
So, it throws out a thesis that this will be a normal baknruptcy, I've seen bankrupt companies that continue to trade and even jump double even with capital of $500 MLN, one of the example of bankrupt company where bondholders took a haircut along with shareholders (stock was worth $200 now $4-5)
https://finance.yahoo.com/quote/TAER.ME/?p=TAER.ME
historical prices:
https://finance.yahoo.com/quote/TAER.ME/history?p=TAER.ME (10 MLN shares are traded daily)
What you don't understand, that stock shareholders already took a haircut and company will be around, if management finds a way, like transfer some unsecure bonds to secured with half or more haircut, company balance sheet will become good, and company stock will start rising substantially...
Now, I believe we'll get higher because $150MLN capitalization is a bit shy for company that got legs, doubling or trippling is high possibility; that translates to share price of $7-$11.... after that everyone will wait on new CEO actions...