Corus Bankshares Inc. (fka CORSQ)

[Billiam_2]

Here's what I think:
Plan sponsor offers a low ball POR on March 2.
1. Plan sponsor buys the float 40MM shares for say $1.00/s from the savvy investors.
2. Savvy investors sell $40MM and keep 5MM shares for themselves.
3. Plan sponsor gives the 40MM shares to the 28 people who own the CDO'S. Debt for equity swap. Debt is now extinguished and creditors get a 10% return instead of a 5% return under the POL.
4. Plan sponsor gets all of the assets including the $27MM in the bank. So, it really only costs them $13MM.
5. Value will be added to equity as future events unfold: potential monies from FDIC lawsuit, NOLS, and "cheap" assets acquired using the BHC as a channel to deal with the FDIC and failed bank assets.
6. We will become ST Residential. Could end favorable with the FDIC because of the partnership between ST Residential and the FDIC.