Legacy debt holders would have to be a part of the "grand compromise".
As it currently stands:
- Debt holders own a debt that cannot be collected on.
- Common shareholders own a stock that has no practical value and has no trading except periodically for professional MM's (below $0.0001)
- Company will face issues with shareholder complaints if it R/S's without Common consent
Seems to me that debt holders and WGAS management have much more to lose than Common at this point. Common is already sub $0.0001 so have essentially a valueless security. Debt can decide if it wants its interest to be permanently uncollectable too (worth about $0.0030 on the dollar without a compromise if MM's will pick it up).
If there's a workout agreement that erases 100% of all debt, then everyone will have a haircut, but nowhere near the degree the parties are currently facing. At that point liquidity is restored and all parties move forward together.
The paradox of iHub: buy high, sell low
