Discussion in 'Stocks' started by cgtrader, Dec 20, 2007.

  1. wow the plan is a tough read...
  2. 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.
  3. david_d


    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.
  4. their last estimate was .42 i think for commons now, but they've revised it down 3 times i think.
  5. 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!
  6. david_d


    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.
  7. Looks like there was some short-term trading value here afterall

    The NYSE listing should be interesting.