Replies to post #434 on GMX Resources Inc (fka GMXRQ)

[Hoyt15]

My previous scenario is incomplete AND inaccurate, because 1)it doesn't explain what the $400 million of Senior/Secured creditors get out of a re-org, and 2) my math on the unsecured creditor payoff is wrong

SUPPOSE the secured creditors got stock, at 100% on their dollar, at a $.25 deemed price, they would get 1.6 Billion shares. Add to that 115 Million for the unsecured creditors (@25% on their dollar, with stock worth $.25), and keep the 10-20 million +/- of existing shares, that's 1.75 Billion +/-. So then a 1 for 100 Reverse split would take the count to a very reasonable 17-18 Million shares, of which existing common holders would hold 150,000 +/-, or 1%. Who knows how much the preferred gets, but it should be something ahead of the common