Common ending up with a 30% stake would not surprise me. What would surprise me is if management rolls before a grz verdict. I do believe their strategy is to stall the stay until At least the hearing and I give them a 50% chance at success. I dont think tenor cares about the burn rate because they have dilution protection. Their 35% never gets cooked even if 2 billion more shares are issued.
Management will have no problem diluting until 2016 if their salaries are on the line. That would be a great plan for them imo. Bondies may get some preferred shares at some point as well that are dilution proof. Unless there is settlement soon shareholders will get cold left overs. Left in he hands of a salary loving management for too long is a one way ticket to a victory with no pay out.
I do think the issue is more about getting a piece of award than control of repayment for note guys. Priority of payments will go to debt holders first unless they exchange some debt for stock. i see them getting a stake but not in exchange for debt. They may get one seat on the board since they missed the DIP boat and had no intention of loaning 36 million on top of a bad bet.
I dont see any deals being made soon but who really knows. I do see this as a prime zone for a pump and main reason I am going to stick around more than a minute on this play. Rumors of a generous bond guy deal or VZ talks could be close.
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