Sears Holdings Corp. (fka SHLDQ)

[justthefactsmam]

if the transcript of the auction and discussion in docket 2339 are to be believed, let's say that esl does cancel its $1.3 billion debt in exchange for shares.

there has been discussion on the board regarding some docket discussion that $1000 of debt could be exchanged for 200 shares. applying that math to esl's $1.3 billion means that an additional 260 million shares would be issued to esl.

apply that same math to any other secured or unsecured creditors who might be exchanging debt for equity and the outstanding shares will be significantly more than what's out there now pretty much shredding the $41/share fantasy.

while i don't mind the dilution and believe it will be necessary to get this deal done if the commons are to be saved, there will still be multiples over the $0.20 - $0.50 basis some now have.