I suppose it'll be the same for common and pref.. OTC trading,
Common will fluctuate more .. but if there's any residual value is in the preferred.
I don't know what to do.. maybe there's the chance to recovery more that 1$ ( only 2 millions of recovery!! ).
I think i'll hold until we descovery at least what they want to do exactly ( new shares ? all for debtholders or there's something for us ) ?
i'm in at roughly $4 also. I would assume the preferreds will also trade OTC like the commons? according to the affadavit, it will take about 6 months for the auction process. until the auction process is complete, this might be trading in the $1 or sub $1 range.
I'm in the same situation
We must wait to see what , if anything , is left to us , and what will ahppen in ch.11.
Will the assets cover the debts? Will GMXR issue new shares ? Are we going to have shares, or money if they liquidate?
For now it seems unlikely, surely common will not get anything unless the auction goes VERY well, and also for us it doesn't seem to be an easy road.
What's your average? I'm in at 4$.
Going to $1.00 if we are lucky.
Total assets 200+ Milion
Total liabiltes 400+ million.
Common Gone, Preferred Gone.
Did not think this would happen.
I was wrong.
It's not WHAT happens 99% probability Bankruptcy coming...Does not take a genius to see that. What I do not get is who would be stupid enough to buy the common ??
Read it again. It says "QUALIFYING" public company, and not just any old public company. There are conditions that the purchaser must meet in order to be considered a qualifying public company.
It depends on how much is left after the senior note holders get paid. If there's anything left, then the preferred holders get first crack over the common holders.
You better check your facts. The preferred shares are cumulative, that means if a payment is missed the dividend continues to accumulate until the company can pay it.
Thanks for the info from the prospectus. You are right that the dividends are accruing, so one day you can hope will be all paid. You are incorrect on the cost basis, the cost basis is no being reduced while no dividends are paid.
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Couple points: Redemption of the preferred would be $25 x 1.8 million shares = $45 million. Also, in rereading the prospectus there is an interesting caveat: "Special Redemption upon Change of Ownership or Control: Following a “Change of Ownership or Control” of us by a person or entity other than by a “Qualifying Public Company,” we (or the acquiring entity) will be required to redeem the Series B Preferred Stock".
The next paragraph says: A Change of Ownership or Control of us by a Qualifying Public Company will not require a mandatory redemption of the Series B
Preferred Stock, but such Qualifying Public Company will have the right for a period of 90 days after a Change of Ownership or Control to redeem the Series B Preferred Stock pursuant to the special redemption provisions listed above."
So it looks like if GMX is acquired by a public company, that public company does not have to redeem the preferred stock.