Replies to post #5311 on RS Legacy Corp. (fka RSHCQ)

[bar1080]

Your numbers confirm that shareholders won't be close to getting anything. BTW, add about $10 mill for fees and costs connected with the BK. I'm involved with a private ch 7 BK involving 200 similar sized stores and that's costing about $2 mill. There's not even enough money left to fully pay the lawyers in that case!

"That would make the recovery for unsecured [creditors] $363/$870 or 41%."

[LouisDesyjr]

Unsecured may recover only about %10 or less

With the Gamestop bid/purchase of 163 locations, we can estimate the value of the 1,700 location. Based on that the value would be about $25 million for the leases.

There are $329 million in 2019 bonds plus all of the other unsecured debt. At the moment, I can see only the money from the sale of the leases being available to pay the unsecured bonds and creditors. That is less than 10% of the outstanding unsecured amounts.

Based on this, the 2019 bonds trading even at 10 is too high.


Louis J. Desy Jr.