RE:RE:RE:RE:RE:Let's say rights offer is cancelledAndjee wrote:
but everyone in finance knows that bankruptcy is the worst option for shareholders because you are always at the end of the line to get your money. By the way when I say money PLI has NONE at all
For an MBA you don't get much (probably not at the top of your class). Sure if there is little cash or asset value, BK generally means the shareholders get wiped out. The point you are missing is that while PLI is cash poor the underlying assets have much value that other biopharma will pay much for if sold in toto without any lien on assets and IP to contend with. So the problem was liquidity NOT ASSET VALUE that BK court would unlock much to the benefit of the shareholders. True the SALP lien would be first in line the the residual value after that loan is paid off will be large and WILL GO TO THE SHARE HOLDERS under the wathcful eyes of the COURT AND NOT TO SALP (who wanted to keep this huge residual value for themselves, which is what tey wanred in the first place).
So bottom line, the main diff between our case and your run of the mill BK where sharehokders do get wiped out is that here in the case of PLI there is large nderlying asset value that others willl bid on and pay much money if given the chance. THis was the purpose of the hardship application to AVOID BK whiich should have been the vehicle to protect their lien. this is how SALP gets to keep it all. So in the PLI case BK is better than the restructure fully directed by selfserving SALP.
Of course there were other avenues of restructure that might have been still better for the shareholders, but SALP did not want any of this. They want to get it for themselves and not to save the shareholders.