Sunedison Inc. (fka SUNEQ)

[Strategyone]

Not Likely.

Those terms will involve the debtors owning 100% of the company.

The only time debtors become 100% owners are in a complete insolvency. Business closing, sell all assets, give all proceeds to debtors.

In most cases of reorg to emerge out of BK, debtors will restructure their timing of payments to allow for an ongoing entity to recover more than what they would in a complete insolvency. The cost to the company for this restructuring can be in the form of higher interest rate (higher returns over time) or equity stake or a combination. My guess is it will be a combination.

Keep in mind, Sunedison has over 7,000 employees and a vast majority of those employees are likely "common shareholders" or incentivized through stock options to become common shareholders. The key to success for most technology enterprises is happy employees which also means happy shareholders in this case.

If a reorg plan came back with 100% ownership going to the debtors only, there would be no employees and no company left.

It is no guarantee that commons will survive but I would say the probability is fairly high especially if they come out with a reemerge plan.

Good luck all