I agree JFM. This is standard practice.
The nuance here is Cyrus is in jeopardy. They are underneath $18-20M of Opus debt that ranks ahead of them. Cyrus will likely wipe out the common shareholders here but they are at risk of their sub debt / convert getting destroyed as Opus liquidates.
Best play for Cyrus is to try to sell RDX, Overland, and Tandberg chunks off as going concerns, possibly separately - maybe get enough to cover the Opus debt and put them in a first position where they can wipe out the commons and be lift with V3 and, ahem, "Glassware 2.0". lolz.
Remember the Opus debt has "business plan covenants" so they may be in default already or possibly as of Dec 31. The Cyrus debt all has cross-default provisions so it's quite possible in my view the company is about out of money and will owe $47M in January.
Given the announced "bids" - they are probably stink bids (i.e. fair bids for these crummy assets) that might be enough to get Opus out and allow Cyrus to salvage something. It's likely IMHO that EK, PT et all are likely resisting such deals as it wipes them out and they are getting fired as well it seems from the Cyrus letter. My guess is EK only cares about his massive severance package at this point (he would be an unsecured creditor ranking along Cyrus in a restructuring) - but he needs to get sacked without cause first or have a change in control.
Usually in these situations management start holding out their hands for "retention bonuses" etc.
In any case as I've said all along, the trigger I was looking for in calling a zero is the Cyrus resignation. I am calling it now.
To zero.
All IMHO and speculation only.
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