Replies to post #431 on GMX Resources Inc (fka GMXRQ)

[Hoyt15]

STUMP, I came up with a possible idea why, as I have seen this before.....IF the unsecured creditors are successful in forcing a reorganization (rather than the contemplated bid), then the existing shares are likely to remain outstanding in order to preserve the NOL's. However, let's assume something under a re-org....the unsecured creditors get $.25 on the dollar for their $115 million in claims, in STOCK. That would leave the company with almost 500 million shares outstanding....way too many. So there is a stock rollback, say 1 for 10. That makes the existing common shares now trading in the market at $.25-.30 actually worth $.025-.03 post re-org. That may be why they currently trade higher than the preferred (which would stand to be worth something more than the common after a re-org)....the market IS correct in this scenario. Would welcome yours' or anyones' comments