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COTRP Bonds Selling $1. Recovery price is $25. Bagger Bonds 25X!!!

Link to board: https://investorshub.advfn.com/J-C-Penney-Corporation-Inc-JCPNQ-6271/

COTRP has a 4M O/S that is to return $400,000,000 in interest. It is backed by four corporations unrelated to JCP, who put up $100,000,000 in a trust that equates to a $25 share price (25 x the O/S of 4M). It is expected to return around $400,000,000 with interest when the bond fully matures.

COTRP pays out two dividends a year at 7.625% interest.

The underwriters (outside corporations) bought a $100,000,000 block of J.C. Penney bonds with a 7 5/8% coupon maturing in 2097 in the secondary market (the bonds were issued in 1997) and put them in a trust. Then the trust issued 4,000,000 shares at $25 apiece.

Bankruptcy Rule of Law states debts must be paid in full, which means COTRP will have to recover to $25 plus current shares and prices. This could put the value of COTRP at a minimum of $25 to over $30 (it has traded over $30 for years in the past).

COTRP is part of the (Un)secured Credit Committee for JCP and is to be paid out in full before shares of JCPNQ can recover.

COTRP is slated at Class 7, though the (Un)secured Credit Committee has been seeking to be on par with Class 3. JCPNQ Common Stock is Class 11 and is far less likely to show much of a share price recovery after bankruptcy.

It is likely that COTRP will see a share recovery, but the percentage is unknown. The sale of the entire company will decide how much is left over that can pour into COTRP before other classes see a share price recovery.

In short, COTRP must recover in full at $25 a share by law, after the sale of JC Penney.