WorldSpace Inc fka WRSPQ

[NY73]

MGTY....Chapter 11 is an avenue for restructuring, but is not a guarantee in any way for common shareholders, regardless of their investment. Look at GM. The common shareholders pre-BK were wiped out....zero...zilch....nothing. They issued new shares post BK. In most BK cases, that's what happens...shareholders get screwed because they are unsecured creditors. It's high risk/high reward game. Secured lenders, then bond holders, then preferred shares, then everyone else, including common shares. And, since liabilities almost always exceed assets, there's nothing left as part of the restructure, and common shares wiped out. The ONLY hope here is the preservation of NOLs. Can't wipe out shareholders and preserve NOLs (Liberty would have to maintain a minority ownership to preserve the NOLs). I know I'm oversimplifying because that's all I know...but...don't think for one minute that the BK process will protect common shareholders, because it won't. It's about equitable distribution/deal related to secured creditors. Liberty paid cents on the dollar to the 'old' creditors to attain their 'rights' in BK court. So, now they own the debt and call the shots. If the NOLs aren't significant enough to Malone, we are scorched. Keep in mind, unless he owns a ton of common stock, a rising stock price for WRSPQ is NOT in his best interest. So, NOLs have to be very high to outweigh the projected rise in market cap that would follow a restructure plan that would keep the common intact. Malone wouldn't want his stake to be dwarfed by common shareholders, would he? So, high NOLs, issue of preferred convertible to common, etc, would have to be the new deal to keep us alive here. IMHO.