linda,
this is to contrast our positions:
you think shldq commons will survive as a result of shc reorganizing around some assets which it retains and doesn't sell to esl. it will issue new shares of its new company, replace the old shldq shares with new shares, and then spin of its tax attributes (nol's, tax credits, etc) to its new shareholders.
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while i think the shldq commons will survive, it is in another way.
I think if esl's bid is confirmed that esl will obtain the majority of the tax attributes as a result of the structuring of its purchase from shc. if that is the case, then i think shldq common shares will be cancelled and the holders of those cancelled shares will have them exchanged for shares in esl's new company "new sears" which is formed sometime after esl's bid is approved by the court. under this scenario, esl's shares would be traded on a when issued basis providing some liquidity for those wanting to get in/out of the new company.
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while we both think that shldq commons will survive, we differ in the way
in your questions to me you are forming them from a mindset of shc surviving around some of its retained assets and my answers to you are formed around the belief that shc will not survive in any way and esl's company is the way forward for commons.
my head's spinning from thinking about this and not being a bk lawyer or having a financial background focusing on bankruptcy, i'm just trying to make sense of what i am reading from a very lay person's standpoint.
my only prior stake in a bk company was in ggp. was not nearly involved in all of the filings with them but that was primarily because i had previously worked for one of the real estate companys which ggp bought out and i was extremely familiar with a significant portion of their most valuable assets.
i also was convinced that ackman's purchase of both debt and common stock which gave him/pershing square a significant position in ggp during the bk process would bode well for old ggp commons. it worked out but i was on pins and needles during that process.
was scared to death, without a basis, that there might be some distinction between pre and post bankruptcy holders of ggp's stock which is why i never flipped by pre bk shares. although i did fabulously well with what i held, i really could nave done better flipping and accumulating more shares. i could easily have doubled or tripled the 30K shares i held in ggp.
that's why i have no issues with flippers in this stock, whether they want to use it as a method of getting "house" shares or if they just want to basically day trade.
in this case, if one is in the postion of needing a trade to clear before buying back in, then one could really be left in the dust if some type of announcement goosing the stock price were to occur.
i flipped my shares one time very early in this process and then got back in which is where i am now with it. am holding with a wait and see attitude.
