The bondholders and unsecured creditors will receive 16% of the company in shares. The two will also get warrants and get what is recovered by the litigation trustee... Right now I have place holders in my e-trade account for shares and warrants. Once everything is finalized I will have access to those shares and will be able to exercise the warrants for the new company.
* Does anyone have any idea what the shares might be worth (or how much the company will be worth in 6 months)?
* Or how good a deal the warrants will be?
* Or maybe any guesses on how much will be recovered by the litigation trustee?
I thought the company's shareholders would survive and that the company was at least worth enough to cover the bondholders and creditors threw time years after bankruptcy with shares and warrants offered to them. When I saw bonds were so cheap I thought if I bought some it would cover for my loss in shares if the shares didn’t survive (I would break even if the shares didn’t survive but would do really well if the shares did survive)... After the shareholders didn’t get the equity committee it appeared the shareholders would be wiped out. Several months after the judge decided against the equity committee, just a few days before the bankruptcy was finalized, $1000 bonds were going for $10. I would not be surprised if in the end bond holders and unsecured creditors would recover just a few percent in shares/cash. Never the less, I bought some more bonds on those final days on the super cheap totaling under $1,000,000 face value in bonds. It did not take much money to get close to that number the few days before the bankruptcy being that bonds were going for about $10 for a $1,000 bond.
