New plan is not that good for debt holders
The new plan does not look that good for the note holders. While they are 'getting the whole company' in exchange for 75% of their debt of $195 million, they also put in another $100 million.
The company has had operating losses, so it looks like they are not even covering the cost of production.
Unless there is some big change coming with the reorganization, I think the senior note holders would have been better off just writing off their loan as a loss instead of putting in another $100 million.
Things look so bad from the June 30, 2013 quarterly report that it looks like unless the properties are worth 70% of their value on the books, the long term debt holders would lose also.
The $568 million in assets and equipment, I would question if they were even worth 50% of the value on the book since they are producing losses and do not seem about to 'turn around'.
Louis J. Desy Jr.
LouisDesyjr@gmail.com
