Commons will be relisted in the pink sheets after a few months. They will be traded in fraction of a penny.
If the company can restructure, then new shares will be issued. You would have to re-purchase them.
Hope that help!
Relax, dude, are you the trustee to declare that: Debt and bond holders commons will be wiped out!
You are just nothing, so let the big boys play - sometimes they play strange things indeed...
We are in unknown land - anything might happen. At least we know that the worst is zero. But the best outcome yet to be known, if any
oh yeah, and just wait for the RUN we will
see when MF receives DIP Financing backed by its ASSETS.
I predict it will come from Deutche Bank or Barclays.
As a matter of fact I believe Barclays and JC
Flowers advised Corzine to protect Equity by
filing for Protection.
read the article. Understand that the vast majority of MF's balance sheet is counter-weighted client settlements pending in transactions. Once those are completed by
the Trustee of the FCM unit (which did not
declare bk protection) what will remain ?
the FCM, the Euro Bond holdings, other Assets
on one side; the Corporate bond debt, and payables in course of business on the other.
Positive value will remain. Agreements will be sought between the Corporate Bondholders for Equity in the Newco and for JC Flowers preferred for Equity in the Newco. Keep in mind
that the Corporate Bond debt is ALREADY in the Liability line and Equity exceeds it.
This will become more clear to you and why MF
sought Court PROTECTION to preserve this balance sheet. MF wants to get the bk over with BEFORE the Euro bonds mature and pay in full
because those proceeds will put it back on the
exchange as an investment firm. Right now CNBC is reporting the bk as NOT pre-packaged. Equity is NOT conceding ownership. GAME ON !!!!!
in fact, he sounds less stupid then, say, yourself.
Sept 9 2008 Lehman collapsed, since then there are 10 types of LEH stock still being traded on Pink Sheets. Some of that stocks several times jumped 600-5000% off their lows. It does not necessarily means that MF BK stock will behave the same way, but anything might happen with stock of BK company in Pink Sheets world.
I saw Spansion BK stock jumped some 1900% from low 1 cent to 19 cents during a session.
Anyway, just consider it as info - I DO NOT suggest anyone to rely on that type of MF recovery, LOL.
I know that the day MF opens in Pink Sheets - lots of people will be selling at or below 10 cents, probably below 2 cents, who knows.... then in a couple of weeks or even months the stock might run up to a half-buck or more... then slowly going to oblivion if trustee to show some known finger gesture to common shareholders....
i've seen dozens of bk's trade .30-.40
which were in FAR worse shape than MF is.
Lear traded in the .30s for months, for example.
Their Liabilities exceeded their Assets by a Billion. MF is technically a solvent company
with positive Shareholder Equity. MF's President in the Bloomberg article which was released after the market close said they will emerge from the process as a going concern. I've had enough for the day and made many comments here.. just watch. Commons will not
lose entire ownership here. Reorg may include partitioning new equity stake for Bondholders.
Chemtura shareholders retained 10% ownership.
They had Assets over Liabilities but could not pay their bills. GGP retained 100%. PPC retained 40% ownership. MF doesn't have a problem paying its bills. They never defaulted on a loan. Their biggest assets are not illiquid factories or goodwill or inventory. They are Euro Sovereign Debt. The Equity Committee will seek to carry those to maturity
or Deutsche Bank will buy them for market value. GAME ON