ExpressJet (XJT)

[downsideup]

Well, at least tomorrow will put an end to the market contest over control of closing share prices used in setting the conversion factors... and, in theory, at least, there ought to be a realignment of interests after tomorrow's close, with both the company, shareholders and noteholders all again having a well aligned interest in getting the share price back up over $1.10 in order to keep it listed on the NYSE.

Shorts have thus far had support either from the company and its advisors, or from noteholders. I think it is the company trying to keep the average closing price below $0.40 in order to prevent conversion of bonds into shares at a highly dilutive rate. I'm not sure what happens on the noteholders side if tomorrows close means no conversion for shares. The company alone, probably, knows how many notes have already been tendered for shares, and how many were submitted for the deal with the bump in the coupon.

I still expect the company to control the outcome... and if they don't, it seems it will only be because they don't want to. The rules and events have given them all the power they need to decide the outcome, I think... It ought to be interesting, still.