This has already been explained, but let's analyze the wording here.
"Nortel does not expect"
-- This is not a statement of fact. They would be lying if this were a done deal. There is something holding them back from canceling common shares, which they would obviously do if it were up to them. They are stating here that they do not want to pay shareholders anything, and that they want all $2.8 Billion in cash to go to themselves.
"Shareholders will receive any value" "will result in the cancellation of these equity interests"
-- This is what makes it sound like commons will be canceled soon. Read on...
"From the creditor protection proceedings" "expects that the proceedings will result"
-- This is clearly Nortel's public position of personal optimism on the outcome of undecided legal proceedings. As you well know, legal matters aren't a matter of Nortel's choice. They may very much want to cancel and therefore not pay commons, but that's why there are "Creditor Protection Proceedings" underway. Do you think Nortel started those proceedings? No. Do you think Nortel wants to deal with those? No. Does it help Nortel if the share price goes down because people think they can cancel the shares? Yes. Can they? No. Only the courts can.
That is why they are only in "expect" mode. The shares will trade just the same until the courts decide which Creditors get what portion of the $2.8 Billion in cash that Nortel has.
I expect that the creditor protection proceedings will proceed to protect the creditors and that Nortel's statement is self-serving hogwash. They just slapped another $774 Million in cash assets on top of their outrageous claim that "we're just too broke to pay our shareholders and lenders." Think the courts will buy it? This is GREAT news for commons, no matter what NRTLQ puts on as a tagline.
Hope this clears things up. Your shares will still be valid on Monday, and going forward until the courts decide on how to fairly protect creditors from Nortel's mistake.
Cheers,
BK
