Unsecureds were hoping for and gambling that EK would not be able to get financing, forcing them into a CH7 liquidation....As we all know now, that's not going to happen. As part of the financing, a cramdown has now been constructed that will take all the value out of the unsecureds...
Commons will survive, diluted for sure....but ALIVE!!!!!
There is NO cramdown, because half of the secured have committed to exit financing. The other half, which equals $375 million are MORE than covered by the remaining assets AFTER accounting for the Jr. DIP.
There is NO way to go around the UN secured, UNLESS the secured are NOT made whole, and they choose to give some of their NEW stock to the current shareholders.
Since the total of the Jr DIP plus the 2nd liens is amount that is slightly greater than the global cash ALONE, there is NO way that 2nd liens will NOT be completely covered.
You are the one who is GAMBLING!!!!
Because BEFORE the common gets a penny, the UN secured must be made whole.
WHY do you think NEW money backstop lender BLACKSTONE's GSO Capital bought $138 million of the UN secured OPEB?
Who knows more, YOU or BLACKSTONE??
Why do you think that the $12 billion Hedge fund Blue Mountain(search in relation to JP Morgan) bought $268 million of the OPEB UN secured general claim?
Why did NEW money backstop lender Contrarian funds buy $130 million of the OPEB UN secured claim?
The OPEB and UN secured bonds are Pari Pasu, and are part of the general UN secured class.
YOU are the gambler who is pumping to GREATER FOOLS, so you can sell for a profit....