ok, will try one last time:
Cash Remaining:
debt to be paid off in cash $84.1m - $5.2m (the .08 converts) - $7m (the .19 converts)
$84.1m - $5.2m - $7m = $71.9m
$117.5m - $71.9m = $45.6m in cash remaining if all other debt is paid as 'specified liabilities'. Worst case is that 'specified liabilities' is zero, which means all other debt - roughly $20m comes out of cash.
So, cash after the L3 acquisition is completed will be between $25.6m and $45.6m
We already know they intend to have at least $35m to purchase Zapata, so it is reasonable to assume that they will based on the above.
Buyout Price:
The $5.2m .08s converts to 65m shares(later)
The $7m .19s converts to 35m shares(immediate)
So, the pre-Zapata Fully Diluted Shares will be 80 + 65 + 35 = 180
$35m/180m = .1944 price per fully diluted share left over after paying all debt, probably the basis for the conversion price drop to .19 as well as .19 on the warrants in case of the acquisition of Zapata.
Fair Value - pre Zapata:
Actual outstanding shares = 80m + 35m = 115m
$35m/115m = .30 a share
So not only is the debt EASILY covered by this agreement which shows that the shareholders will not have a reduced pct ownership as a result of Ch 11, it also shows that today's action was highly unreasonable - closing at a very undervalued level.
Right? Wrong? Why?
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