can you please elaborate on what you think "the deferred payment was profitable" means? Do you have any idea what you are talking about? WRES missed an interest payment and is now in default of all of its credit agreements. There was nothing "profitable" about this.
The press release this morning seemed very clear to me. WRES is in default of its credit agreements and expects to restructure the balance sheet. Whether or not they do it under bankruptcy protection or via an agreement with their lenders, the current shareholders are about to be wiped out. Why is the stock not down -80% today? What am I missing?
Anyone have an explanation for this stock is down -25% from the news of the new convertible offering? The company is using the proceeds for working capital and to buy back stock. We need to see what the convert price will be before knowing if it will be dilutive but the market seems to be making some ridiculous pricing assumptions.
The most likely explanation is that this is a classic bear raid driven by the potential buyers of the convert. By smashing the stock price today they can negotiate a lower conversion price for the note. IVC and JP Morgan should not have released this plan before they got the pricing lined up. Mgmt looks like fools and JP Morgan looks like crooks. That said, this is a tremendous opportunity to invest for a rebound in IVC after the convert prices and this cram down is over.