Replies to post #91 on Scottish Re Group Ltd Perp Pfd (SKRUF)

[cadillac107]

Liquidation may occur to a company when management decides that its operations are worth more to shareholders "dead than alive", and proceed to sell off its operations. However, in your scenario, this is only the case if its a total liquidation. There is always the possibility that the firm may decide to keep some of their businesses in operation, and may only liquidate a portion of their subsidaries.

[h_man_investor]

You can't have a change in control and a liquidation.

A liquidation is the sale of the assets not businesses (ie, they sell the securities, chairs, buildings, etc).

In your scenario you seem to think that a liquidation trumps a CIC. You can't sell a majority of the business and trigger the CIC provision then sell the remaining businesses and say it's a liquidation. In pretty sure MM and Cerberus would have a senior creditor claim on that one.

Regardless, the scenario you paint is something that MM and Cerberus would want to avoid and would do only if it was their only option. That's why I say a higher price is many years away.

Let's not forget who's in charge here- it's MM and Cerberus. They took out the common at about a 1/3rd of what you said it would fetch. This was a great move by them and there was nothing anyone could do to stop them.