Rotech Healthcare Inc fka ROHIQ

[big-yank]

The CMS bidding protocol for HME was announced years ago and comes as no surprise. Everyone knew reimbursement pressures were headed for the lowest common denominator... i.e., the low cost producers... yet management did nothing to lower costs (outlandish SGA), added layer upon layer of debt and bought up all these mom & pop branches. Their own PR including relatively recent investor presentations (please see J.T.'s I-Box) imply that volume will drive a breakeven. With the new contract, do they now have the volume? If so, why are they filing BK and giving the shareholders a dime? Why are Tier 2 noteholders willing to exchange $230M in high-yield notes for common shares that from management valuation are worth $2.6M?

This is like a "Fumble-Rooskie" in football. Maybe the BK Trustee will throw a penalty flag and stop this dimestore rape of shareholders?

All IMO.