Replies to post #465 on Endo International Plc (fka ENDPQ)

[1manband]

Endo is bankrupt. The common stock has no value.

In order for the common shares to have value in the bankruptcy, the creditors need to 100% satisfied for the full amount of what they are owed. Taking into account the true value of the assets and all the liabilities and debt, and the huge costs of the bankruptcy process, it would almost certainly require something north of $7.5 BILLION just to pay off what is owed. For the common stockholders to benefit, an acquirer would need to pay more than that.

The creditors have agreed to acquire all the assets for a credit of $6 billion. Which means the unsecured creditors will receive pennies on the dollar, if anything. For them to get out whole, another acquirer would need to bump that bid by 25%, and for common shareholders to get anything, it would need to be more than that.

That is highly unlikely to occur. They are primarily a generic drug maker with a huge amount of legal issues, which is not attractive to other drug companies.

Sure, the Apes could try to pump this as a "short squeeze" and it may work in the very short-term, but long-term, the stock is almost certainly going to zero and common shareholders will be wiped out.