chessmaster from the article: "It often goes well beyond “ghost” shares, too. The most nefarious of short sellers target companies with negative reports–sometimes with legitimate information, and sometimes with falsehoods or half-truths–to drive down share prices with maximum impact, thus ensuring that the companies lose their ability to obtain financing. Once that process is completed, naked shorters then begin to offer those same companies alternative financing (predatory debt), which they have no option but to accept."
Sounds all too familiar, the White Paper exposed the counterfeit shares in the take down of Fannie and Freddie in 2008 and according to the writer billions of counterfeit shares were created. A successful cram down will make these illegal shares vanish, including short shares and naked shorts. Certain people on this board push extremely hard for a cram-down.
If the Treasury were to convert the SPS and exercise the warrants into common stock in essence the Treasury will own 99.9% of New Common Shares: Treasury can do a reverse split with any number of outstanding shares they choose remaining, this wipes out today’s existing common stock, shorts, naked shorts and any number of counterfeit shares outstanding.
Transfer of Ownership Cram-Down
Explained,
Legacy Shareholders means, collectively, each person that owns common stock of the Company immediately prior to the closing of the Transaction (cram-down) which in no event shall include any of the Investors; or very few will remain afterwards maybe 1% or less.
A cram-down deal refers to a situation where an investor or creditor is forced into accepting undesirable terms in a transaction or bankruptcy proceedings.
In the case with Fannie Mae the Treasury's holding of senor preferred stock in the amount of $120.8 billion, with a liquidation preference of $185.5 billion.
If the Treasury converts this amount of SPS into common stock the Treasury in essence will own 99.9% of all the common stock outstanding. The number of shares outstanding depends on price per share at the time converted. The amount of shares outstanding after the cram-down does not matter at all, it's the percent ownership, a transfer of ownership from the legacy common shareholders to the Treasury. This transaction will cause the legacy common stock to vanish along with any short positions, naked short positions as well as any counterfeit common stock outstanding. Afterwards, the Treasury can do a reverse split reducing the amount in number of the new common stock outstanding.
AI
