Internap Corp fka INAPQ

[Bert_From_Accounting]

Bankruptcy document values shares at $1.71 - INFO:

In the chapter 11 docket https://cases.primeclerk.com/inap/Home-DocketInfo

“Threshold Amount” means $20,500,000 in principal amount, which the
Debtors believe is an amount of Claims that could result in such holder of Claims holding the
Applicable Percentage of New INAP Stock.


“Applicable Percentage” means 4.5% of the number of shares of New
INAP Stock that the Debtors reasonably estimate will be outstanding immediately after the
effective date of the Plan, as determined for U.S. federal income tax purposes.

Per the bankruptcy plan:
On the Effective Date, each holder of an Allowed Class 3 Claim
shall receive its Pro Rata share of (i) commitments under the New Term
Loan Facility, in the aggregate principal amount equal to the New Term
Loan Facility Principal Amount; and (ii) 100% of New Common Equity,
subject to dilution by the Management Incentive Plan and the New
Common Equity Warrants. The receipt of such consideration shall be
deemed, as of the Effective Date, to be in full and final satisfaction,
settlement, release, and discharge of, and in exchange for, such holder’s
Allowed Class 3 Claim against each Debtor.

“New Common Equity Warrants” means 4-year warrants for 10% of the aggregate
amount of New Common Equity issued and outstanding as of the Effective Date

So, this says that:

4.5% of the new company is valued (*by INAP) at $20,500,000. Thus, algebra tells us full company value is = $455,555,555

The current shares will be converted into warrants entitled to 10% ownership in the new company (subject to dilution by employee incentive plan). 10% of the company is $45,555,555.

Finally, $45,555,555 / 26,621,105 shares = $1.71 per share.

The two big variables: 1. Is the bankruptcy a success? 2. How much dilution will result from the employee incentive plan?