Genco Shipping andTrading Limited (fka GNKOQ)

[sts66]

Thanks Yoda. Still pondering if/when to dump it - hit $2.14 today - but who the heck is buying stock in a company that's going under? Common stock is going to be near worthless, the debtors will own almost all of the company:

Class 11 – Equity Interests in Genco.
(a) Classification: Class 11 consists of Equity Interests in Genco.
(b) Treatment: On the Effective Date, Equity Interests in Genco shall be cancelled and discharged and shall be of no further force and effect, whether surrendered for cancellation or otherwise and holders of Equity Interests shall not receive or retain any property under the Plan on account of such Equity Interests in Genco. Notwithstanding the foregoing, on or as soon as practicable after the Effective Date, holders of Equity Interests in Genco shall receive, in exchange for the surrender or cancellation of their Equity Interests in Genco, their Pro Rata share of the New Genco Equity Warrants, which warrants shall come from amounts which holders of Prepetition 2007 Facility Claims and Convertible Note Claims would otherwise be entitled to under the Plan.

Retailers get some tiny pro-rata number of warrants, which graciously allow you to have to spend even MORE money if you want to convert to the new GNK shares:

Subscription Ratio. Each holder of a Prepetition 2007 Facility Claim that is a Rights Offering Record Date Holder will receive its Pro Rata share of the Lender Rights to purchase shares of New Genco Common Stock, and each Eligible Noteholder will receive its Pro Rata share of the Noteholder Rights to purchase shares of New Genco Common Stock. Each Right will entitle its holder to purchase one share of New Genco Common Stock at a subscription price of $18.62537.


Good explanation of how Chapter 11 works here:

http://www.sec.gov/investor/pubs/bankrupt.htm


Found another PDF from:

http://www.gencorestructuring.com/plan.php

Looks like bailout time comes by June 2nd, 2014 or thereabouts:

The deadline for the Company and other Supporting Creditors to reply to objections, if any, (the “Reply Deadline”) for June 2, 2014 at 4:00 p.m. (prevailing New York time); and
? The Combined Hearing at a time convenient for the Court on or about June 4, 2014.