A hedge fund named Fortress LLC lent MFS the $150m that is required now, not UBS.
The rumor is that Fortress let other hedge funds know their debt had a covanent that said if the market cap of MFS fell to a certain level then the debt needed to be repaid.
So every man and his dog shorted the hell out of MFS, which triggered massive margin sales and resulted in it being suspended.
Remember that companies usually trade on forward PE multiples, if the market think these are going down the price wont recover until profits do. MFS will be lucky not to go bankrupt let alone make a profit in the next few months.
MFS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
