Bankruptcies

Discussion in 'Stocks' started by A.J. Sutton, Aug 16, 2016.

  1. I would assume the shareholders either won't get anything or would get a tiny portion just to make them go away. But looking at the capital structure, I can't see how they realistically expect to get anything considering bond holders won't be made whole for awhile, if at all.


    Thanks for clarifying on the second lien, I hadn't been able to dig into it very far. Seems there might be a potential play here. Unless equity holders screw it up, the vote is very soon on the proposed plan.
     
    #21     Aug 28, 2016
  2. JackRab

    JackRab

    It's basically the tug of war between debt holders and equity. Equity tries to put forward a case that there is more value in the business than the debt holders say. And there is a case for that. In 2014 they had a large write down of their equipment, about 4 bln worth, and you could argue that that was excessive.
    If that's the case they should've gotten some stock in the new company. But they might be a bit late in the whole process....
     
    #22     Aug 29, 2016
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