BANKRUPTCY PLAYS

[finbar99]

Mgmt's plan going into Chapter 11 to hand it over to Bayside is horrid. My first thought when the unsecured creditor committee stood up and called them out on it was that this case really had some legs - the underlying business is pretty solid, especially for a company in Chapter 11. But, some of the more recent motion practice by the UCC indicates a desire to reorg it....and they throw out some values - I'm not 100% sure that they are perfectly aligned with equity - I think they'd slap a value on the exit that would not exceed 100% of claims (if you look at their most recent numbers, they throw out some EBITDA based valuations that put them well into the money, but not enough for equity. I think with an EC though, I'd be all over it at .10.....but not so much without it.