Replies to post #8941 on Corus Bankshares Inc. (fka CORSQ)

[rsr2004us]

Hey Irish, good to see you ! :-)

[Vulcanized Crawler]

well when the fdic seized the bank....
and someone bot up the float almost...spending 25-35mm in doing so, to get commons.....wouldnt they be a little upset to be owning toliet paper? billiam, whatcha think? mikie??? errett? pathan?

[hang ten]

Everyone? If you've read my posts carefully in the past you will note that I've never ASSUMED that.. or taken it for granted.

The success of commoms here largely rests on the possibility of a 'large shareholder' with whom our interests would be aligned... As it is I think the chances are pretty good but we won't know until we know..

[Billiam_2]

Welcome back II! I would not say I "assume" commons will be included in a deal, rather it makes the most sense. Could commons be cancled, sure, happens all the time. In this case however, we have seen a group buy up the float. The "Savvy Investor Group" is the name given to them. We know from court docs that 48 plan sponsors were in fact interested at one time. It makes sense that the marketing of CORS was done by the Savvy Investors. They can bestow the float on the 28 CDO owners in exchange for debt and get paid for their shares (Equitization by the plan sponsor). This is the simplist way to preserve NOLS. It has been demonstrated in other deals that a debt for equity swap includes an exchange of old debt for new shares (old shares are canceled) and NOLS are partially preserved. In our senario NOLS are 100% preserved. So,if you believe in the Savvy Investor Group, then commons are included in any deal going forward.