I don't believe that either the warrants or the 10% dividend is legal. But I'll stay with what Collins requested: 1) refund the over payment above the principal and dividend, 2) write down the SPS to zero.
As I have mentioned many times, if Treasury exercises or sells the warrants, I, along with a legion of shareholders, will sue. It's not really fair that they might have to buy back their warrants, but I would consider it a compromise. The buy back would probably be at "fair value" which has been defined in the warrants agreement as the average closing price for prior 20 days. At current prices, it is much less than the refund asked by Collins.
BTW, prior 20-day average closing price is the same deal that was offered to the banks.
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