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Otelco, Inc. Message Board

  • amateur_everything amateur_everything Dec 27, 2012 3:55 PM Flag

    Lampshade, what will be criteria for buying post-BK?

    You guys on recent threads are way over the head of most investors, as I am sure you know. I am interested in whether you would share some of your thinking when you say you "might buy after filing when it hits .05/share." What would make you buy or not buy? Thanks for anything you would be willing to offer, and your and other informed posts are really appreciated.

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    • AE,

      It would be more a hope and a prayer that the IDS bondholders could negotiate some sort of cash payment as part of the settlement process. If the proceedings are tied up for a long period of time, the liklihood of that happening would be remote. So no real criteria just a long shot gamble. My decision to do so would be impacted by the Q4 revenue and cash balances at the time of filing.

      But again, the operative word is "might"....not sure if I will.

      Good luck to you.

      • 1 Reply to lampshademan100
      • Thank you for the thoughts. I meant to ask, too, this question. Do you think there is any possibility that the bankruptcy court would authorize the issuance of additional shares immediately after the bankruptcy? In other words your answer to my question is you assume you would be buying the existing shares (IDS/stock) and no more would be issued? Maybe it is apples/oranges, but I am thinking about many bk companies (like KMart a while back) where the "old" shareholders got wiped out, but new shareholders did great. And I believe the new shareholders got their chance when the bankruptcy court authorized the immediate issuance of "new" shares. My ignorance might be showing bad, but I do appreciate the discussion very much.