For all those bargin hunters...see any value out there? CPNLQ Court accepts bankruptcy plan http://phx.corporate-ir.net/phoenix.zhtml?c=103361&p=irol-newsArticle&ID=1088961&highlight=
The outcome of the valuation fight, which ultimately will be decided by the bankruptcy court, will determine how much unsecured creditors and shareholders recover under Calpine's plan. The company plans to issue new stock to the unsecured creditors and, if the creditors are paid in full, to its existing shareholders. Calpine's post-bankruptcy value determines how much those shares are worth, and thus, how much creditors and shareholders will recover on their claims. The shareholder committee's valuation would give them about 35 percent of the new shares Calpine issues after bankruptcy.
No value here. The shareholders will end up with worthless warrants. Word is strike price at 115% of new issue price and term of 6 months.
So when they relist on the NYSE in February the warrants will be worthless? That seems like a raw deal, but not surprising. But if they were known to be worthless wouldn't they be trading closer to zero? Someone is buying!
What will determine the value here is when the warrants expire. Six months is very short considering the 50 -50 potential of a major recession and market drop.
Looks like there was some short-term trading value here afterall The NYSE listing should be interesting.