Someone has probably answered this already, but I will just in case. Share dilution is simply adding more shares outstanding. It doesn't effect your personal share holdings, that would be only during a forward or reverse split of shares. If they do an equity swap/share dilution, X ammount of shares would be issued at X price into the market. The negative side is the more shares out there, the less value per share...The positive side, it would be paying off important debt, which I think is fine. As to how many shares or when this could happen, I have no idea. They plan on exiting Ch-11 by Summer 2010 according to yesterdays PR, so part of their plan, if indeed this is what they plan, would be to present to the courts and publically announce a share offering. I think this would have to be part of the POR, but not exactly sure...Either way if you follow the court docs and news, you'll be well informed ahead of time. For an example of what is meant by an equity swap, Bank of America (BAC), and Citigroup (C), are perfect examples of this. BAC did about a 12% share dilution recently in order to raise funds to pay back TARP...Citigroup is doing the same thing. Hope that helps.
