Why EXXIQ and not EXIXQ Preferred shares?
Reading through the latest court documents, the equity committee was asking for about $59.X million worth of voting rights in new reorganization plan, and was granted those by the judge. If the equity committee, who represents all equity (common and preferred), only think there's 60 million worth of equity in EXXI, and the preferred shareholders get paid first(EXIXQ), then how does EXXIQ stock have any value at all today?
How will there be any recovery for EXXIQ with 813,000 EXIXQ outstanding at a par value of $250 a piece? The reorganization would have to make the EXIXQ preferred stockholders whole at a cost of $203 million before the EXXIQ holders get anything. If $60 million worth of new equity or cash is given to the equity holders, each EXIXQ share should end up being worth about $74 apiece and the EXXIQ cancelled.
What am I missing?
I sold my common EXXIQ awhile ago, some of my EXIXQ, but am still holding some EXIXQ... Trying to figure out what I'm not understanding here, only been investing in stocks for a few years and this has been my biggest loss by far!
