Quoted from SEC link filing below:
A 1–for–10 reverse stock split of YRCW common stock; and conversion of the new preferred stock into common stock.
Assuming the satisfaction of the Minimum Condition, we will issue a minimum of 922.5 million shares of our common stock with a derived value of $0.28 per share.
Assumed value of shares issued pursuant to the exchange offers (230,362,000 shares of YRCW common stock issued at a derived fair value of $0.28 per share before giving effect to the 1-for-10 reverse stock split)
Coversion will turn into commons before split.
My guess is final diltion offering will be very soon and Nasdaq delisting warning will come before the split.
This is likely their last chance to hang on, however read their proposed savings plan that will highly tick off the truckers again.
That is for the reverse split. Nothing that has to do with the conversion price is based on the $1 NASDAQ minimum. If there were no minimum NASDAQ price, they would not do a reverse split. The 1 for 5 to 1 for 25 range is to get the share price up over $1.00. Notice how 25 is an option. That would mean that YRCW foresaw the stock trading as low as 4 cents a share at the worst. (your worst case scenario).
I'm sticking to my original plan of waiting while all this nonsense goes on. I may buy twice. And sell twice. If the reverse split happens (and I know it will), the stock will nosedive temporarily. I don't like day trading though.
On another note the 160 million operating cash that Bill Z refers to, probably includes the 55 million LOC and the 50 million tax refund due in February. That would mean YRCW's cash position is 55 million without those items. That would mean a cash drain in the 4th qtr of 165 minus 55 or (110) million.