Arch Coal Inc. (fka ACIIQ)

[LouisDesyjr]

The common shares are dead

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=119950131

In the last 10Q report, stockholder equity was over $600 million NEGATIVE. With the losses from the months not reported, equity will probably be over $1 billion negative.

Even the bonds are expecting large losses, and the bonds are all ahead of the common shares in the order of priority for recovery in the bankruptcy classes:
http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=aci

As an example for how bad things are for the bond, here are some quotes from this morning:
7% June 2019 0.5 (A $1,000 bond can be bought for $5)
7.25% June 2021 1.0 (A $1,000 bond can be bought for $10)
7.25% June 2020 1.0 (A $1,000 bond can be bought for $10)
8% Aug 2019 27.5 (A $1,000 bond can be bought for $270)
9.875% June 2019 5.5 (A $1,000 bond can be bought for $55)

Just to review about a bond. The bonds are each $1,000 par value, which is due to be paid at maturity, and until then pays interest on the par value, so the 7% June 2019 bonds pay $70 of interest per year.

There is no way the common shares are going to survive.

Even if you though the common shares had a chance of surviving, a better play would be to buy some of the bonds. (I do not recommend that either since it looks like a number of the bond series are going to get wiped out also.)

Louis J. Desy Jr.