GREY:ZARFF - Post by User
Comment by
rad10on Dec 24, 2018 1:31pm
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Post# 29154905
RE:RE:RE:Voted NO
RE:RE:RE:Voted NOMethod wrote: The only issues I see with voting no is that the receiver will likely get more than the equity holders and the convertibles are an impediment to any deal for less than $42.5m in value.
The idea that they can pay PIK interest is unfortunately not possible so that’s when they will default and go into receivership.
The receiver will get more. The equity is worthless and you can't expect them to work for free.
The convertibles are not an impediment. They are trading where they are for good reason. Any prospective buyer is looking at the whole enterprise value. They can make an offer for the debentures or ask to cancel the change of ownership redemption clause. I would be very receptive to that idea if there was a firm offer on the table.
As for PIK in lieu of March interest - of course it is doable - just another amendment requiring a 2/3 majority vote like any other. Which debenture holder would vote against that? Nobody in their right mind.