Dix,
I spoke with the Wells Fargo trustee and this is how he explained it to me. Approximately $17 of the original $50 value for the H's was the value of the warrants to buy common stock at a future date. Those became worthless in bankruptcy so all the trustee could claim was the $33+ that was the value backed by the junior subordinate bond. They also made a claim for the interest earned but not paid prior to bankruptcy. This $33+ was only going to get paid if all the bonds senior to it were paid in full including interest. Any money left over after the senior bonds were paid would go first to paying off the $33+ and then to pay the interest that would accrue during the bankruptcy. Only after the $33+ and the interest was paid, would money flow to equity. Rosen is saying in this POR that there is enough money to pay all the senior bonds and interest but not enough to pay all the claim for the H's. Since the final amount of the claims is still unknown, he can't give an exact amount but thinks it will be approximately 75% of the claim. This is where we are getting the approximately $25 which is about 75% of $33+. The court hasn't ordered anything. This is just Rosen blowing smoke and trying to panic people. He needs to make it appear there is no money for equity so he is keeping the H's from being paid in full. If more money is found it will go to H's. I am expecting money to eventually flow to equity so I am expecting H's to eventually be paid off at close to $40 which is the $33+ and the 2 years interest.