I'm surprised. I thought this would be bid up to something close to 2 bucks. I'm glad we have some new board members. They need to clean that place up. Cut the fat...I'm sure there is a lot of it. #corporateraiders #iloveit
I am curious to see what they do with the cash they raised by this massive dilution. It does not sound like they were too enthusiastic about paying down debt, but the bonds mature in less than 2 years and I imagine the banks my want a share. As for putting more capital into their business, isn't that what caused the problem in the first place?
They will probably pay down some of the debt. Southern Cross didn't just hand over a blank check. They are on the BoD and will do their best, I am sure, to make this business profitable...something the Menendez bros could not do. Sit tight. It was either this or go belly up. Be thankful SC stepped up with so much cash. $220M in a lot of money for this company. They own the same class of shares that you and I do.