or in most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.
hmm equity for debt swap. equity holders might be lucky to have $1-$2. This happens when company has assets but run into short term liquidity issues. my two cents after reading 10q.
this is what they said "NII, which in March hired financial firms to advise on a potential sale of the company, said it will not be able to continue to operate unless it can "restructure debt obligations, find a strategic solution or some combination of those approaches.""
Source of massive loss = 3G deployment. Isn't 3G deployment was over after June 30th; thats when TEF deal went live.
BK risk is high. I expect payout even in case of default. If they make Aug 15th payment, buyout is confirmed/stake sell. If they dont make Aug 15th payment, BK is done deal.
First CCB guaranteed BK/default by June 15th. Then Aug 15th. What to say. feeling suspicious about CCB.
First CC claimed "Mark my word - June 15th is the BK date". Then blamed poor Franc.
Then CCB claimed "Aug 15th is the BK date". LOL
Whats the next date ?
They are diluting stocks. That's about it. Reported in Mexican newspaper. Very same reason OIBR trading at 50 cents. Massive dilution.
I can't believe people are going to this level to force people sell. Yes, bankruptcy risk is there.
Bankruptcy statement via email would cause massive lawsuits.
Franc, things have turned around. They moved away from expenses in 3G and TEF deal went live.
It will be purely call from management to strike a deal.
Looking at so many deals, looks like something is possible.
Vivendi is moving away from wireline to wireless. There was a rumur I posted like 3 months back. Last week TEF stuck a deal with Vivendi.
Lets assume that NIHD is like someone like with cancer with very less chances of survival. CCB is like someone holding a drawing in front of the person saying "you will die". Even that person goes to toilet, CCB will follow him.
IR can be in jail for saying such words.
Hmm. Never heard of NDA. Any buyout, investment stake, acquisition starts with NDA - thats very first thing. Its called Non Disclosure Agreement.
CCB, you forgot to mention that Nextel Brasil increased 3G coverage from mere 14% in Q1 to almost 50% in end of Q2. It covers isolated areas. Desserted areas are covered via TEF deal. ONLY NEXTEL BRASIL owns wide band spectrum suitable for multimedia applications.