Replies to post #33051 on Sunedison Inc. (fka SUNEQ)

[bogblog]

I've never seen debtors get 100% of the company you silly sausage. It might happen, but it's far from the norm. From my experience, which is admittedly limited in Q stocks, preferreds usually get a stake in the reorganized company, and commons may or may not, depending on (perhaps among other things) 1) Their assets, and 2) The degree to which shareholders have a voice in court. Regarding the former, they just made over $1BN in asset sales this month; and the latter, my understanding is that shareholders do have a voice in the SUNEQ proceedings.

I watched UPL*Q run thousands of percent, and SDO*Q and RSH*Q and AR*PQ run hundreds of percent. I was in all of those I think. You can double your money or more on these ones easy -- or just as easily lose it. But with the 200-MA cross today I had to add to my position.

All IMO. I'm not an adviser, nor have I done DD on SUNEQ. These Q stocks are high-risk, high reward, so manage your risk wisely.

[2bamaster]

Just unreal.

"Those terms will involve the debtors owning 100% of the company."

Ok so first, you're stating an outcome with absolute certainty.
And then second, you're stating the DEBTOR, which is SunEdison, is going to own the company...

Thanks for posting.

[Strategyone]

Not Likely.

Those terms will involve the debtors owning 100% of the company.

The only time debtors become 100% owners are in a complete insolvency. Business closing, sell all assets, give all proceeds to debtors.

In most cases of reorg to emerge out of BK, debtors will restructure their timing of payments to allow for an ongoing entity to recover more than what they would in a complete insolvency. The cost to the company for this restructuring can be in the form of higher interest rate (higher returns over time) or equity stake or a combination. My guess is it will be a combination.

Keep in mind, Sunedison has over 7,000 employees and a vast majority of those employees are likely "common shareholders" or incentivized through stock options to become common shareholders. The key to success for most technology enterprises is happy employees which also means happy shareholders in this case.

If a reorg plan came back with 100% ownership going to the debtors only, there would be no employees and no company left.

It is no guarantee that commons will survive but I would say the probability is fairly high especially if they come out with a reemerge plan.

Good luck all