Document 817
It looks like the existing common shares are class 14 in the plan:
Class 14 — Existing HoldCo Common Stock
(1) Classification: Class 14 consists of all Existing HoldCo Common Stock.
(2) Treatment: On the Effective Date, each holder of Existing HoldCo Common Stock shall
receive its Pro Rata share of the HoldCo Equityholder New Common Stock Distribution.
In addition, each holder of Existing HoldCo Common Stock as of the Rights Offering
Record Date shall receive its Pro Rata share of the HoldCo Equityholder Subscription
Rights.
It looks like the existing common shares will get converted into about 35% of the new company:
72. “HoldCo Equityholder New Common Stock Distribution” means: (i) 41.0% of the New Common
Stock, subject to dilution on account of the Management Incentive Plan, in the event that the Settlement Plan Value
Case 16-32202 Document 817 Filed in TXSB on 12/06/16 Page 10 of 54
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equals $6 billion; (ii) 31.8% of the New Common Stock, subject to dilution on account of the Management Incentive
Plan, in the event that the Settlement Plan Value equals $5.5 billion; or (iii) 44.8% of the New Common Stock,
subject to dilution on account of the Management Incentive Plan, in the event that the Settlement Plan Value equals
$6.25 billion.
The problem is figuring out what the company is able to generate in order to have any idea of what the shares are worth.
Louis J. Desy Jr.
