And your point is what? This is the second time you’ve appeared out of nowhere to explain this to us. Thanks, but we are all painfully aware of what this is and how commons are eliminated IF the proposed restructure plan is approved by the courts (which could take weeks or months).
So far this is a proposed plan that BK court has to approve. And yes, we do know the difference between Chapter 11 and Chapter 7. If you had taken the time to read the documents submitted to the court (they’re on the Spectrum web site), you’ll notice about 100 pages in that all bond holders have to agree on the restructure plan AND (please pay attention) the court has to agree with Spectrum’s analysis (they have a section on this in documents) that those owed debt are better off in the proposed Chapter 11 plan versus going Chapter 7 and liquidating assets.
Now, of course HUSSEY and boys would like to retain control so they’ll say and twist numbers any direction to try and prove that the bond holders are better off getting 20% of debt and oh they also get new shares (the ones we used to have). Remember this is the same group, along with LBOs, that overpaid for companies purchased and ran up this unbelievable debt. They now want a free pass and want to continue operating the company after they spen all of the commons money. Some of the bond holders and maybe class action attorneys representing commons might disagree with the Spectrum analysis and make strong arguments to the judge that all would be better off with Spectrum liquidated.
If you’ve read ANY of the market analysis of Spectrum you’ll see many of those covering Spectrum said they needed to lose some companies as the companies were too disjointed and there were no efficiencies in buying a bunch of companies with dissimilar products. So this is no slam dunk for HUSSEY and his gang of thugs IMO. Hussey had to have been working on this right after he told commons in a letter that all was good and that he had plenty of cash flow to weather the recession.
As far as new shares, the only thing that SOB HUSSEY will get from me is a size 12 up his arse!!!! If you’re here to sell new shares, don’t think for one minute any institutional buyers (of which at one time was 70% of SPC) will touch the stuff. THEY DO NOT LIKE BEING BURNED. And it remains to be seen, whether NYSE would take them back either. Spectrum was a complete and TOTAL failure pushed by the Leveraged Buy Out groups that funded Spectrum. It is a classic example of WHY the economy has failed and we need to clean house and rid it of the toxic waste like HUSSEY and his financial thugs!!!
So yes, those of us still owning commons understand the situation. We also know there is always drama around BKs and opportunities to flip a few shares and maybe get some of our losses back. Almost 5 million shares have been bought under .02. Ever see a trading group run a stock up. Maybe that will happen or maybe it will sit around here and disapear. But yeah we got it!! : )
