, the Existing Shares shall be cancelled without further action by or order of the Court. Each holder of an allowed existing equity interest shall receive its pro rata share of (i) New Common Shares representing, in the aggregate, 0.5% of the New Common Shares issued on the Effective Date, and which upon conversion of the New Convertible Notes (the deemed conversion of which will occur on the Effective Date) will comprise 0.29% of the total outstanding New Common Shares (subject to further dilution by awards under the MIP and the New Common Shares issuable upon exercise of the Warrants) and (ii) seven (7) year warrants (the “Warrants”) entitling their holders upon exercise thereof, on a pro rata basis, to 6% of the total outstanding New Common Shares at a per share price based upon a total equity value of $1,789,000,000 of the reorganized Company (assuming the maximum conversion amounts of the New Convertible Notes).
On the Effective Date, the Company expects to issue (i) 14,925,000 New Common Shares to holders of the Unsecured Notes, (ii) 75,000 New Common Shares to existing stockholders of Basic as of the Effective Date and (iii) 10,825,802 New Common Shares for the deemed conversion of the New Convertible Notes occurring on the Effective Date. The Company expects to reserve an additional (i) 2,066,598 New Common Shares for issuance upon the potential exercise of the Warrants and (ii) 3,237,671 New Common Shares for issuance under the MIP. On a fully diluted basis, assuming conversion of the New Convertible Notes and exercise of all interests expected to be..
Not worth holding, common share holders are getting screwed on this deal. JMHO
AI
