Both Kodak and the bondholders must know that there are 23 MIL shares short. IMO shorts are banking on cancellation of existing common. Any news confirming survival of existing common would create the MOASS. The bondholders must know that acceptance of a debt to equity swap, via dilution of existing common, has a TON of upside. This could easily account for 500%+ gains in a single day. Add that to new concerning re-emergence, wiped out debt, and possible asset sale, and we could see 3.00 PPS in a week's time.
So, why issue new common? Why not just dilute existing common which is sure to see exponential gains.
You also bring up a great point that when considering the idea of debt for equity swap, there are 4 BIL in NOLs to consider. This begs the question of whether or not Kodak BOD and/or creditors would truly consider an ownership change.
IMO, it is seeming more and more plausible that Kodak may execute a debt to equity swap via dilution of existing common.
All IMO, of course.
