Paragon Offshore plc (fka PGNPQ)

[Imagineer66]

"diluted down to like 30-35 cents"

-- No

No. In a NORMAL situation, dilution usually lowers the stock price because we are sharing the same pie with more people. In this situation because it is a BK exit, that won't happen because while the common is getting diluted, the debt is being wiped away. We are sharing a MUCH larger pie with a few more people.

So, normally, the equation looks like this:
(EV-debt)/shares = PPS - real rough approximation

In this case, there is no debt but there are the new shares:
(EV - 0)/(old common + new debt conversion) = PPS.

The new case should come out somewhere between $2 and $7 (rough whole dollars).