madclown,
1st - thanks for the posts, especially the bond trades research.
2nd - a hypothetical question only - asking only for your opinion here. Lets say after the reorg plan valuations are completed Aventine is actually solvent (market value of all assets exceed sum of pre-petition allowed claims and post-petition liabilities) and therefore they can't qualify for fresh-start reporting. Does it follow that there is (by default) a "net equity value" that exceeds all liabilities that the existing stock holders have a claim on?
I realize that the BK court has to approve of the assets valuation, the reorg plan, the treatment of all claimants, etc. and can over-rule anything. I also realize there might be new shares issued to the debt holders as part of the reorg plan - meaning dilution for existing stock holders.
In a nutshell, I am wondering what your opinion is on what happens with the existing shares if Aventine can't qualify for fresh-start reporting when they emerge from Ch 11?
