Motors Liquidation Company (fka MTLQQ)

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As we look back into history you will find a trend happening and then she will all fall into place as to how it once worked but has changed over time.


One is were now a company should its business plan have some glitches they can have a second chance at correcting it by shorting there own stock " selling the stock below the strike price set" were one a par value has to be set for the stock and two the debt for the short position held goes to early investors that is not to say one can't capitalize on a short position take by the company by buying low in a sector.


A sector is for example MTLQE, then a change to MTLQQ the selling high in that particular sector and buying low and watching should the sector change to a lower or higher sector.


Now should you hang on to a low sector you will take on the debt from that point upwards to the point of issuing an S1,2,3 ect. this is often noted in the industry as a arbitration of debt that is very different to the arbitration of an asset.


That capital raised by this process can now be used to secure further institutional debt that may or not be a convertable debt depending on the outcome of the business model in question at the time the debt was requested from the sanction of the sec as to if the company could in fact short its own stock.


The shorting of this nature is different then the one were one can borrow stock or the one were a investor can sell his or her stock short.


The shorting I am talking about has to have a public anouncement of the fact this is done and not that a secondary trading of shares is not taking place cause granted there will be some of that going on and that is were capital surplus and retained earnings ect will break those two components apart speaking in general to the two different secondary offerings were one is debt and the other is the not understanding as to what is really
happening in the market place or that someone is forgoing debt to take on lower debt not understanding how now they will have to wait even longer to recoup there capital that could push them into another product cycle or hunt for new commodities or service depending again on what the company is offering to its customers.