NMC Health Plc (NMHLY)

[Embers]

Chapter 15 is somewhat ambiguous.

Chapter 15 only allows for the bankruptcy to be in US courts. It does not define the type of bankruptcy. So this could be really bad or it could be mild depending on the final bankruptcy type.

That is my understanding anyway.

So the word bankruptcy is definitely not good news, but if is just a mild bankruptcy stock holders like to fare better. Remember there are a lot of Arabs owning this stock too. They have a vested interested in recovery.

The final bankruptcy type is important.

Chapter 7- Liquidation- Bad for stock holders. I don't think this will happen because it would mean the company would no longer exist as it does today.

Chapter 11- Reorganization- Mild, stock holders generally okay but could lose money. I believe this is more likely because the company could continue to exist and pay down remaining debts. If the company can remain viable, creditors are likely to get the highest payback in this scenario.

Comments welcome.