I wouldn't rule anything out yet
Will the commons survive? That would be entirely be up the courts if the Committee still pursues the fight and has other legal avenues of having the current ruling overturned imo.
Will the Committee continue to fight for its client base and will there be speculation that the fight is only in the 2nd round with 2 months to go?
Read some of the language from the Committee and be your own judge.
The Official Equity Committee remains optimistic that its presentation, with the
assistance of its financial advisor Allen & Company, to the Bankruptcy Court
during the confirmation hearings beginning June 15th, will show that the current
Plan of Reorganization must be found to be unconfirmable because, among other
reasons, it proposes to give noteholders new notes and new common stock with a
value greater than the amount of their claims under their existing notes, and is
thus not fair and equitable to existing shareholders.
Highlighting the Plan`s lack of fairness, the final disclosure statement
quantifies for the first time that Spectrum`s management and board of directors,
who today own approximately only 3% of the stock, may be awarded up to 10% of
the reorganized company`s stock under the proposed equity incentive plan which
seems like a perverse reward for their decision to put the company through this
highly questionable chapter 11 filing , and to support a reorganization Plan
which seeks to wipe out existing shareholders.
Again, I'm not a lawyer and do not know what, if any further action can be taken in an attempt to have the current order overturned, I just know anything is possible in the United States and nothing is over until its over and then some.
All of the is my own opinion and I would not recommend anyone take a position in the stock.
