Value of the Competing Plans to Shareholder Equity..
If the Roust Plan is adopted with $172M for 85% of CEDC equity, that would bring the current stock value up to $202M, or roughly 10X current pps at $2.84..
If the A1 Plan is adopted, CEDC debt is reduced from $1,215M to $880M or $335M which would bring the value of equity up on a per share basis to $4.88 ($335M / 72.8M shs: $4.60 + $0.28 = $4.88/shr)
you are completely wrong - the restructuring will be implemented by using a so called pre-packaged chapter 11 filing. Moreover the common shares will be cancelled as shown in the March, 14th SEC filing.
Its important for shareholders to understand that this PSA is nothing more than a structured debt agreement. The company intends to continue in operation without any sale of assets or equity. The result of the debt restructuring will be an enhancement of the financial condition of the company. This is NOT a bankruptcy, it is simply being handled as a pre-agreed debt restructuring for an ongoing entity.