It's funny how many times I have seen this posted, as if Rosner's words were somehow good for commons. Sure, receivership is bad for them. But Rosner's tweet heavily implies that Treasury will monetize both the warrants and the seniors. That means that the seniors won't get cancelled or deemed repaid/redeemed. Instead they would be converted into a different type of equity.
If that type of equity is commons, the current common shares get absolutely obliterated. The current common market cap is around $2B, and the seniors' liquidation preference is $193B. That gives Treasury 193B / (193B + 2B) = 98.97% of the common equity, and that's without exercising the warrants! Include those and current commons get 0.2% of the post-release companies, a 500x dilution factor (without taking a junior conversion or new equity raise into account).
If that type of equity is non-cumulative preferred shares, the dividend on the current juniors would be crushed, but the commons would basically never get a dividend again. That means that when new shares are offered for a recap, the price per share would be rather low.
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