This really comes down to the true value of NEC and it's testaments (assets). NEC will inevitably go through a DOCA. Under a DOCA, it all comes down to what the secured credits accept. It can by anyone of the following three:
- NEC is sold for cash, secured creditors will be the first paid. If the asset does not sell for more than it's secured debts, all secured holders will receive less. If more, then it's possible any unsecured creditors may receive a payment either in part of full.
- NEC is sold for script secured creditors will be the first paid. If the asset does not sell for more than it's secured debts, all secured holders will receive less. If more, then it's possible any unsecured creditors may receive a payment either in part of full.
- NEC secured creditors undertake a debt for equity swap.
Any DOCA will take time to play out.
PZC Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
