You better do some DD cause the funds are mostly controlled here by a insider . Do some DD to find about who controls the biggest fund in dial shares.As for shares under a dollar not being able to be shorted, wrong. The common retail investor maybe but wealthy traders and hedge funds sure can and do.
The stock trades as if it were bankrupt and worthless. This may ultimately be the case, but I don't think so in the short run. First, their debt default is a covenant default, not a payment default. Second, there are no assets at DIAL. The entire business is contracts with on air personalities, radio stations, NFL. etc. There is nothing to foreclose on. The last thing a lender wants in this situation is for management to "throw them the keys" and say "you figure it out". The lender knows they have no chance to run this business. This makes the lender, at least in the short run, likely to take a negotiated change to its covenants along with a revised business plan. The other thing that happens is it gives DIAL an opportunity to renegotiate their contracts with on air personalities, NFL, etc. to lower their costs.
The lenders will look for some support from the controlling shareholders in the form of an equity investment, a partial guarantee or some other form of credit enhancement. It is unclear whether the shareholders will do this. My guess is that there is probably ill feelings among the controlling shareholders and they are at odds with each other.
My guess is that something gets negotiated in the short run. You will lose almost all your value as a lender if you take the company into bankruptcy since all the assets will simply walk out the door.
Having said that, this is a shrinking business. Radio listeners are declining and advertisers are taking their ad budgets online. If they cannot stabilize the revenue line, the company will go bankrupt eventually.
The stock here is a speculative option on stabilizing the business. Traditional media such as radio, TV, newspapers, magazines, etc. has not bounced back after the 2007 panic. There doesn't seem to be a bottom to their revenue deterioration. It looks like a buggy whip business in the medium term...