A win win for us simple minders that voted no. We get the restructure results (which we really wanted) and preserve our rights for any future class actions. Strictly a business decision for us. Thanks for your yes votes.
Interesting point, but I strongly doubt there will ever be a legitimate cause of action, particularly now that the reorganized company will have a healthier balance sheet and the odds of going belly up are almost zero if the company continues to be managed conservatively, since RLECs have recurring cash flows and little or no competition in many areas.
More to the point about a class action... How did Otelco's management or board of directors ever breach their fiduciary duties? How did they not act in good faith? How did they not act in what a reasonable person would have thought was in the best interests of the company? A business case can be made for everything they did since the IPO -- even for the ill-fated acquisition of Country Road.
I'd be shocked if there were any legitimate causes of action. I think Walk57 is right that all you'd ever see is ambulance chasers piling in, not legitimate lawyers who think there's a reasonable chance of winning. So good luck with that.
If enough simple minders played it the way you did the Company would still do what they did. And chances would be very high that shares of the reorganized OTT would be worth far less then they are going to be. Yes, you preserved your rights if an ambulance-chaser or two wants some action. It was a risk I was unwilling to take.
I wonder if the 4% who voted against the prepack realized that the senior debt holders could have just taken 100% of Otelco's assets and left the IDS holders with nothing. If they did realize it and voted against the deal anyway, then that reminds me a lot of economists' studies of the "ultimatum game" in which they find that people will irrationally reject free money out of spite.