Now we know why the stock traded down the last two trading days
Now we know why the stock traded down the last two trading days.
As previously reported, The PMI Group, Inc. (the "Company") received an indication of interest from a well-known private equity investor (the "Potential Investor") who indicated an interest in investing in a reorganized Company in exchange for a minority equity interest in the reorganized Company. Since that time, the Company, in consultation with the Official Committee of Unsecured Creditors appointed in the Company's chapter 11 bankruptcy case (the "Committee"), has engaged in negotiations with the Potential Investor with respect to the terms of such a potential investment. The Potential Investor recently terminated such negotiations, and the Company expects not to proceed with a transaction with the Potential Investor. Although the Company, in consultation with the Committee, may identify and seek to pursue a different transaction with another party or a chapter 11 plan of reorganization not involving a third-party investor, the Company has not yet determined whether to pursue such a transaction or plan. There can be no assurance that the Company will identify or pursue an alternative transaction or that any alternative transaction will be completed. If the Company determines to pursue a chapter 11 plan of reorganization not involving a third-party investor, there can be no assurance that such a plan will be confirmed in the form proposed by the Company.
It seems like the management team can´t secure a deal with interested investor(s). I really hope we are not back to square one and there are other options the company can take to get the company forward without wiping out commons.