As a condition of the asset purchase agreement, Riverstone has agreed to conduct the sale of its business under the provisions of Chapter 11, section 363 of the U.S. Bankruptcy Code. Following this sale, Riverstone intends to satisfy its remaining non-operating liabilities including payment of its convertible subordinated notes in the amount of $65,875,000; provide for any contingent liabilities and costs of liquidation; and distribute its remaining cash to Riverstone's shareholders as part of a plan of liquidation. Riverstone's shareholders should consult with their tax advisors as to the income tax ramifications of the liquidating cash distributions
Additional caveats might include just how much of the $170 million might get "eaten into" i.e. how many "non-operating liabilities" might there be?
What we have here is an unusual form of arbitrage.... Today the company has X millions of dollars in excess of their convertible subordinated notes in the amount of $65,875,000. They, in addition have been offered $170 million for their business assets.... for a total of about $1.50/share which they have stated they intend to distribute to shareholders
How much of this will dissolve like a piece of hard candy ... Every 13 million will knock about .10/share from the distribution.
Future bidding for RSTN shares will be, imo, like a Dutch auction where, at some point, big money will say the risk of holding outweighs the reward of too conservative a closing share price.
Whether a market for shares continues following delisting is a question i don't know the answer tol
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