Ted- As you know, companies declare voluntary BK not only because there is no equity value but they simply can not find enough cash I.e. Working capital to operate with. Look at this situation here, PP the sole financier is under immense pressure to liquidate and they simply can't finance them anymore.The company has significant orders to fill in and they need money to work on those. That's when DIP financing and voluntary filings come in. There are million examples of these. Even though there is value in excess of debt, they simply don't have the CF. That's happening here. As Poker found out and as we guessed yesterday, there is not much increase in net financial debt since March. We need to see the details of specific liabilities, any CIC pmts (10% of equity value I.e 3.5mn), the share count (we haven't see a notification for conversion) but there will be cash in the tunes of 25-30cents per share but min 20cents in here. After this transaction goes through, shareholders need to vote whether they want ge cash or Zapata shares. Zapata valuation, how much Franky sacrificed for US access and IPO discount yet to be seen. However, when all said and tdone,I would expect that 25-30 cents to go up given the excitement around Zapata. All in all, L3 is getting a great deal. I wonder what was the initial price they were putting when PP's hands weren't tied up. I agree with your statement that both coming together simultaneously can not be coincidence.
The ones who sold at 5-6 cents w panick yesterday simply left significant cash on the table. IR says that after Naples, they had incredible number of calls asking how they can invest in Zapata. Too early to tell but I will convert and move on.
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