" RESOLVED, that the officers of the Company be, and each of them hereby is, authorized and empowered, in the name and on behalf of the Company, to file an application to convert the above-described case to one under chapter 11 of the Bankruptcy Code to the extent that said officer or officers shall deem necessary or appropriate."
It seems possible that noteholders will convert and the company will file for chapter 11? Thoughts?
I was thinking the same thing myself. It seems as though all along they've been trying to get the unsecured note holders to convert to equity, with only half or so going along with it. They may have been playing hard ball this entire time and felt AHR(or Blackrock) didn't have the gonads to throw it into Chapter 7.
If your an unsecured note holder and it says in every press release you will likely recieve nothing, why wouldn't you convert??? It may be perhaps the strongest negotiating tool AHR had.
Even if it were to happen, there most definetly would be massive dilution, but even at that, I'm sure the pps would trade up from here. Maybe would only go as high as .10 or so in the near term. That's why I took the risk and bought a few hundred thousand shares at .02.
Odds are against it, but its worth a long shot. Those boys at Blackrock seem to be pretty cut throat, and this may be the boldest move by them yet. Throw it into Chapter 7, take nothing or else convert to equity.