It bears worth repeating that in Docket #650, the office of the SEC says the following:
"With respect to the hopeless insolvency prong, the Debtors’ financials indicate that the Debtors
do not appear to be hopelessly insolvent here. The balance sheet as of the petition date shows more
than $1.3 billion in stockholder equity."
So after you take out $560M from the satisfying of Preferred Stock classes A and B (who would be in front of commons in the waterfall), that leaves $740M left for commons and divided by 213.7M shares outstanding, that comes to a share valuation of $3.46/share.
If you take Martin Lewis's valuation, the one under oath last week that the judge used to approve an EC, that number of shareholder equity could be even greater. His high end valuation is 2B in shareholder equity, which would value commons at $6.73 per share
And if you wanna dream big and see how it could go higher than that, then visualize a bidding war breaking out that goes above and beyond these projections or a creative deal getting struck in the vein of something like an American Airlines or General Growth stock. That's not far fetched because that's what these people who run companies and hedge funds do, where one could see commons additional get shares in a new company as well. So I concur with the notion that this stock is still severely undervalued. Chapter 11's are very complex and most people have no idea how they work, but this is potentially one of the great ones with all the strong things that you look for. As always do your own homework and DD, and hope that people representing the EC think like shareholders. GL to us all.
file:///C:/Users/tw/Downloads/126016844478-rep-0710045317%20(7).pdf
AI
