but of course CEDC will reject this as Tariko has control of management decisions. Expect the stock to move up big time until CEDC will reject the offer perhaps as soon as tomorrow.
Instead of making this placebo offer Kaufman should have bought the distressed convertible debt in the open market for 30 Cents on the dollar and offered it for conversion to the company - this would have been a great blow to Tariko.
Maybe he was already active and bought some convertibles. There was a lot of trading last week! I am happy to see a second interested party with $$$. I do not consider this as placebo offer...if he offers the senior bond holders not to cut anything, he will get the strongest party behin him. Because if there is no agreement until March, CEDC will go bankrupt and EVERYTHING will be owned by the senior bond holders. It seems that Tariko wants them to accept a haircut too...this is (according to my interpretation) the reason, why Kaufman expressely offers a 0-haircut to the seniors. He know who will have the power in case of ch11. But again, we now have 2 offers on the table...2 are better than one.
obviously you still believe that in case of bankruptcy the senior bondholders will get the whole company including all of the most valuable Russian assets. Neither Mark Kaufman nor CEDC itself are thinking so as the latter has already warned investors that chapter 11 proceedings for an entity with virtually all of its assets outside of the US might pretty much differ from what investors are used to. While the bondholders might be handed over ownership of CEDC in court it remains to be seen what will be left of the company's assets in Eastern Europe then as Tariko currently can do whatever he wants to at the company and also will most likely prevail in Russian court proceedings.
actually Kaufman wants to haircut the convertibles to current market value (which would make his proposed $75 mln infusion close to adequate for the company to get rid of this liability in full) while the 2016 senior bonds wouldn't be touched.
Of course Tariko will be fast to reject this offer.