Actually the lenders would profit the most from forcing the company into chapter 11 as they will get 100% of the newly issued shares after restructuring. Installing a better management or outright selling the restructured company to private equity might actually hold giant gains within a very short time frame for the new owners. By converting the existing debt into equity the company won't be burdened with interest payments anymore and instead would be highly profitable on a cash flow basis.
And this will happen pretty soon. Bankruptcy might be filed any day here. Shareholders will get nothing as there's zero chance for JOEZ to refinance the loans given what happened.
Joe's net tangible assets are about $50 mil, all in inventory. Therefore, the lenders option are to lower the interest rates, force a bankruptcy where they'll get a few cents on a dollar, or try to convert the loan to equity.
Don't know if they have the right to convert or if the insiders own enough stock to vote a takeover.
Only people in worse shape than the retail stockholders are the lenders.
That's fine I'm out and will be back in when it gets hammered, also just made a killing on CYAN. If you can't handle the game then don't play.
the only thing that will fade into the sunset is you ..the company will be here a long time after you are gone ..........that is aguarantee ...........HAPPY THANKSGIVING