Triad Guaranty Inc (TGIC)

[dharmamatt]

I would assume so.

Of course anything is possible as we are all just guessing, but there are precedents. KKR et al recapitalized WMIH (the shell from Wamu) with $1B of prefs etc to capture their NOLs. Unfortunately, it is still languishing today at $0.80.

This group probably has less capital, unless they team up with a bigger player. But in any case (again, I have no clue) but I would assume massive dilution, a lot more than you have suggested. The current shareholder does have claim to the current assets, and hopefully the investing party has shares, so they will be kind to the current shareholders

I guess we will find out in a month or so. Definitely interested in other thoughts on this.