I was curious about a vulture play on DAL and now NWAC also. This past week on PBS here in Atlanta Gene Henssler who runs a fund was discussing DAL with the commentator. As a follow up they will be discussing DAL on WGST AM640 radio here from 9 AM to 11 AM this Saturday morning. This should be interesting especially since DAL is a large employer and well know here.
============ Yes ,tighten up stops on last 100k or simply get out; looks like DAL, NWAC will go low, and lo and lower
Mr. Turtle, Am down to 10,000 NWAC--ended up making some money on my position as I sold it from 79 vts to 1.04, I see NWAC will be off the NMS as of Monday, new symbol NWACQ. I don't like the fact the DAL and NWAC bonds rose after the filings. DAL bonds in particular are likely to be worth 5 cts or so when the plan is finalized. DNT, which is a $25 par DAL bond traded on NYSE was a screaming short at $3.65. I can borrow it for 1/2 ct per day and while I was considering it, I could have made good money on it. NW 9.5% QUIBS are now under symbol NWBBQ, but they are too high at $5. I would pay $3.25 here. They are likely to be worth 20-25 cts in reorg. because NW was smart enough to file soon. What I find funny about both these bankruptcies is the Pension Benefit Guaranty Corp "warning" both to keep making payments to their pension plan. PBGC has ZERO authority over the bankruptcy court, and if NW and DAL were individuals , somebody at PBGC would be held in contempt of court for violating section 362(a), the automatic stay provision and would likely now be in the hands of federal marshals. There is so much crap going on in the US and elsewhere that it's almost like the "Big Bad Wolf" scenario .
Does anyone know what kind of priority NW's exchange traded debt (eg NWB) might get (stopped trading a few days back, NYSE plans to delist)? I'm guessing it's unsecured but how senior? Fitch has CC on senior unsecured debt. Just before trading halted, NWB was behaving like common, albeit a couple points higher at $5 (par, I think, is $25) I was tempted to play some short common-long baby bond strategy a week back, but realized I know too little to risk it. GM, anyone?
NWB is trading OTC at about $5. That's too high. I am $3.25 bid for 50,000 and every $.25 below that I will scale orders
Sorry - I missed your 2nd last message. You reckon no more coupons, but something more than 10% of prinicipal? Edit: and less than 25%?
I'm still long a little NWACQ and am curious what will happen to the stock. It is hanging around .36 It trades a couple of hundred thousand shares a day. I don't have any experience in companies that have filed, and I was wondering if anyone can elaborate on what is driving the price. Who is buying the stock and why. Why is it still even trading. Does it all hinge on the restructure plan? I'm not worried about the position as it is not huge, I'm more just curious. tia