messages.finance.yahoo.com/Stocks_(A_to_Z)/...;tof=2&frt=2
Zitat Bopfan:
The problem is, that even if retail has a majority, Newco has no money, so unless Newco is sold or partnered, it has no way of becoming profitable. The SNs will try to get control of Newco (minority status (44.34%)of retail is one way, and undercaptialization another). Keeping commons makes sense, because so doing gives retail power once Newco comes into existence. Then if the SNs want to try anything (they do) they have to wait until we exhaust Newco's financial resources since retail's majority would prevent the SNs from taking over the company by changing the BOD.
This only delays the inevitable, however. Once the money runs out, the SNs as creditors can file an involuntary Chapter 7. At that point retail equity has no representation (no EC), and it's only hope is that the TPSC will also oppose the SNs.
However, TPSC is in the same business as the SNs, and the SNs could bribe them into submission.
Moreover, even though in a Chapter 7, the specter of the SNs actions in WMI's Chapter 11 could be problematic (i.e., it knew a Chapter 7 would follow eventually), and retail and TPSC would accuse the SNs of planning a Chapter 7 all along, and the SNs (now creditors) would say that retail was represented by the EC and the EC urged equity to vote for the plan. My guess is the SNs would win.
Retail Ps and Ks should make no mistake: having 59% of a company that is undercapitalized and in peril of Chapter 7 (no equity committee) is no better than having 47% of a company in the same situation. The problem is money. Notwithstanding, I'm voting for the plan because having 59% of Newco is better for retail because it keeps alive the possibility that if a merger partner is found, then the SNs can do NOTHING to to stop such a merger. We have leverage as long as the money doesn't run out, which is why retail should do everything it can to compel the BOD to find a partner for us.
For these reasons, though greed would urge holders of Ps and Ks to vote 'no', voting 'yes' saves commons and gives us a majority in the reorganized entity, and we'll need that majority to protect ourselves later.
Of course, I am cynical about loyalties among the BOD (they can be in bed with JPM or the hedge funds), but we can address that problem another time.
ZItatende
MfG.L:)
Alles nur meine pers. Meinung, kein Kauf- oder Verkaufs-Empfehlung!