DJTC- Can someone who understands what is meant by "Unaffiliated Stockholders" please explain it in english?
Bondholders are protected by the lien, what about stockholders
Especially this part,
Under the Plan, the holders of the TAC Notes and the unaffiliated holders of the
TCH Notes would exchange their notes (approximately $1.8 billion aggregate
principal amount) for an aggregate of approximately $74 million in cash, an
aggregate of $1.25 billion principal amount of a new series of 8.5% senior
second priority mortgage notes with a ten-year maturity and secured by a lien on
substantially all of the Company's assets, subject to the Working Capital
Facility (the "New Notes"), and approximately $395 million of common stock of
the Company valued at the same per share purchase price as Mr. Trump's
investment (assuming the unaffiliated stockholders of the Company fully exercise
the warrants discussed below).
Existing unaffiliated stockholders of the Company would retain their interests
in their current common stock (which would be diluted to 0.05% of the total
equity interests of the recapitalized Company and are expected to be
reclassified pursuant to a reverse stock split upon consummation of the Plan).
The existing unaffiliated stockholders would also receive one-year warrants upon
consummation of the Plan to purchase common stock at the same per share purchase
price as Mr. Trump's investment. Proceeds from the exercise of the warrants (as
well as any remaining shares of the $50 million of the Company's common stock
reserved for warrant exercises, if not all of the warrants are exercised) would
be distributed to the holders of the TAC Notes. If all of the warrants are
exercised, the Company's unaffiliated stockholders would hold approximately 8.3%
of the Company's common stock, the holders of TAC Notes would hold approximately
63.7% of the Company's common stock and the holders of the TCH First Priority
Notes would hold approximately 1.4% of the Company's common stock, each on a
fully-diluted basis.
TIA
Do as you do, Not as I say
