Fibertower Corp fka FBBT

[rfarmer]

You can cancel the common if the value of the assets is less than the liabilities. In Fibertower's case we have yet to see a fair evaluation of the assets. There is some cash, there is some infrastructure, there are contracts generating $60M per year, and their is the SPECTRUM. You cannot just declare the common wiped out and poof it is done. There are processes that have to take place which protects creditors, lienholders, and shareholders. A lot of these processes are still in the early stages. If Fibertower sandbags the value of the spectrum there are common shareholders who will contest that valuation. Having the Spectrum on the books at $288M, writing it down to $106M, filing for chapter 11, and then stating that the common is wiped out, is a complete SANDBAG JOB that doesn't pass the simplest of sniff tests.