Almost $500M in the BankThese bankruptcy rumours are completely absurd. The company has enough liquidity to continue as a going concern for the foreseeable future. If any deal is to be made that would require bankruptcy counsel advice at this stage, it is one where the company makes an offer to unsecured bond holders at a substantial discount to their face value which would be funded by a new tranche of secured debt. That my friends would be very bullish as overall indebtedness would likely be reduced significantly if enough unsecured bond holders accepted the offer. I don't have clarity on the volume of trading on the unsecured bonds over the last several months. However, if there has been a lot of turnover, that would mean that the average cost basis on the bonds is likely well below face value making the chance of success of execution of such a strategy more likely.
I would appreciate anyone's insight on whether a siginificant amount of the bonds have changed hands during the last several months.