Replies to post #31434 on Sunedison Inc. (fka SUNEQ)

[blanka]

Amen!

Thank you as I been a shareholder as well before the BK and still holding and been averaging down...

SUNEQ

[Hugodrax]

You have no idea what you are talking about.

The converts are trading at 3 cents on the dollar because they are likely getting wiped as well - as they are under the DIP, secured, and first and second lien bonds. They are pari passu with the contingent claims as well.

[taniag]

I'm very long in SUNEQ but to tell you the truth, convertible bonds only follow equity when the bonds are trading above the conversion value to the stock. This is why the bonds were so high last year when the stock was $30. Once it falls way below the conversion factor as it is now, the implicit value of the optionality falls to 0. Optionality is a positive value and not negative, so by being convertible when the optionality is 0, it's actually adding value to the bonds.