ergodoc - hat is off for the great work you've been doing. Don't hold any shares right now, just starting to look - I love the Qs but this has been a big case, and I usually look only at the smaller ones. At any rate, I think you are one of the ones heading up the EC and I saw an update on another site discussing the EC review with the judge and the CC objection that:
>>Stated the Bonds are trading at anywhere from 23% to 40% face value so bond traders do not think they will get paid back, therefore there will not be any money for equity since they will be paid before equity.
Very interesting if only because I just got off the phone with a personal friend who used to trade for one of the bigger firms in a boutique division that did special situations. We were discussing Kasper - an old case that went from a nickel to 6 bucks 10 odd years ago. He was saying that while they had a gut feeling about the equity, the quoted prices in the bond market at .50 kept them largely at bay - they figured the bond market was 'smarter' and knew something they didn't. What he found out after Kasper hit the 5 to 6 dollar range was that while the bonds appeared to be trading at .50 on the dollar, there were bidders offering in excess of par - but the bond market for the debt was illiquid and the bond traders were managing to hide the real demand. I unfortunately have never played around much with the bond market, but having just had the random conversation and then coming across this - thought I would pass along the heads up - it may be an area worth researching.
