Replies to post #31212 on Sunedison Inc. (fka SUNEQ)

[MasterBlastr]

Think of yourself betting on 23-red but there is a nail pounded into the 23-red slot. You have no shot.

[Hugodrax]

I didn't state they are "going out of business".

I said the equity will get cancelled in the plan that will be approved by the court.

If the company survives the bondholders will be the new equity owners.

The reason you are wrong and I am right is called "mathematics". The liabilities are WAY higher than value of the business and assets. Due to the absolute priority rule in the bankruptcy code that means equity gets nothing. As it should.

A chapter 11 reorg is not designed to preserve equity ownership. It's designed so the company can continue to operate (for the new owners - the bondholders).

You obviously don't know how these things work. The debt is all in default and the company can't even pay back a fraction of it. That means equity is gone.