CEDC also announced today that Roust Trading Ltd. ("Roust Trading") has informed CEDC that Roust Trading intends to make an aggregate $5 million payment to all existing stockholders of CEDC, including Roust Trading, as of April 5, 2013, if the Plan is confirmed by the Delaware Bankruptcy Court. This payment, if made, would not affect the other recoveries currently indicated under the Plan and will only be provided on the condition that it does not otherwise impede or slow down the approval and consummation of the Plan and is agreeable to the Delaware Bankruptcy Court. Roust Trading continues to work with its advisors, as well as the advisors to CEDC, to assess its ability to make this payment and no assurance can be given by CEDC, Roust Trading or any other party that this payment will actually be made. So, what's going on with this payment, doesn't it guarantee a sp of $0.07 (current market cap is 1.42M @$0.022)?
From the same PR, one can read:
The financial restructuring, which will eliminate approximately $665.2 million in debt from CEDC's and CEDC FinCo's balance sheets, does not involve the Company's operating subsidiaries in Poland, Russia, Ukraine or Hungary and should have no impact on their business operations. Operations in these countries are independently funded and will continue to generate revenue during this process. All obligations to employees, vendors, credit support providers and government authorities will be honored in the ordinary course without interruption.
So why the stock should be wiped out if the BK is involving only a subset of the company?
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