IDS Holders seem to be the only ones giving up anything in order to save OTT. AND they are being asked to give a lot. Senior debt holders are being made whole and getting a 7.5% equity stake (in lieu of loan fees). Liquidation would presumably leave IDS Holders with little to nothing but Senior Debt holders would only recoup 63% so they too have something to lose should this not work out. As an IDS holder it seems petty that we are getting burned for the deferred interest too. Even though I know I would make out better with the forced conversion to equity I feel like voting NO just because it is unfair. They could be more creative and reward IDS Holders better should the company survive and prosper. Instead it is just greed and theft. Sorry but that is how I feel. I don't even have that many shares and will break even if it just makes it back to 2.50....but it still is wrong.
If you vote yes or if you don't vote at all you waive all your rights to a future lawsuit. I would think some firm would be willing to organize a class action on the IDS holder hehalf. I assume our small number of votes will not impact the "Master" plan but voting no and not signing off on your rights seems like a good insurance policy for future lawsuit gains. While I only have 12,000 units, some firm can make a case it was worth 7.50 a share plus lost interest for 2 quarters plus all lost value of the common. Seems like an opportunity for a few bucks. Again I see NO benefit in voting yes and waiving our rights. Just my opinion and my plan unless I hear something that can convience me differently. Right now I can't even figure what I would end up with if the plan is implimented. The only thing I hear on this site is "Its a good plan, vote yes and the alternative is you will get burned". Well I already have been burned so a tiny bit more really won't hurt all that much more.
All of the good that will be bestowed on the OTT balance sheet comes by way of crucifying the IDS holder. We are already shareholders and they are saying that now we can again be shareholders but at only 92.5% of what we held before? They say the common shares are cancelled but really it is the bond being nullified. Imagine - there will be 53M in shareholder equity after this deal goes through (it is (143M right now).... just guess where part of the offset to that is? That's right GOODWILL and intangibles will balloon from 51M to 128M. The exact same balance sheet accounts that they just wrote off 144M from! All of that is made possible by extinguishing 108M in IDS debt for free.
I am just guessing that the reason there is 7M in wiggle room on the loan amount is because they are prepared to pay the deferred interest if they are forced to by the judge or the big IDS holders. but of course they will try to avoid that if it's not necessary. Shame on them.
Thanks for your posts and input. I take away 2 great points you make. 1) the motivation for the vote and benifit of voting no 2) the timing of pushing this now due to the interest payment deadline.
I haven't decided which way I am going to vote yet. Again thanks for your posts.
We'll see how far some ambulance-chasing law firm gets because a company unexpectedly lost its major customer and then the government decided to inflict further damage all in the same year. It's called investing. Sometimes it doesn't work out like you expect. The blame game won't work here.