Well given they bought the debt at a 50% discount it seems logical that if you were to pass that haircut onto the company and it could then become profitable and pay back your debt then that would be a reasonable deal. The question really is though will it become profitable under that scenario.
I think this ann is a headsup to litigants and investors is that there in nothing left to sue and get out. With the sp so low it puts them in a better position to negotiate the haircut. Basically the banks are going to lose its a matter of how much. If the equity is worthless. It is really a choice between liquidation or haircut for the banks.
My guess is about a 50% equity swap and mostly clear the debt. That deal may actually work if the company can pull out a profit out but thats not looking good.
Good luck
SGH Price at posting:
20.0¢ Sentiment: Sell Disclosure: Held
