read the last sentence :
Some of the four - D.E. Shaw
Laminar Portfolios LLC, Goldman Sachs & Co., Sigma
Capital Associates LLC and Par IV Master Fund - bought
the stock when it was trading at less than a dime. Foamex
stock now sells for nearly $6 a share.
While the stock boomed, DE Shaw, Goldman Sachs,
Sigma and Par IV parlayed their cheap shares into a seat at
the Chapter 11 bargaining table. There Foamex reworked
a reorganization plan that had called for creditors to end
up in control of the company. The reworked plan put the
big shareholders in charge.
That’s thanks in part to a $150 million equity rights
offering that is expected to boost the majority stake held
by Foamex’s big four considerably.
Two of Foamex’s biggest shareholders, DE Shaw and
Goldman Sachs, are also big creditors. Some of the $150
million equity rights offering, for which they get a share of
a $12 million fee, is headed right back into their pockets as
payment for the debt they own. <------ i wonder if this senerio is occuring with SCRA? Who are the note holders? This article was a great read ,thanks.
