Market rebounds for Iron Ore, talking heads are turning positive on sector. ANRZ is wild card here if they can curtail short term issues. could see .25 today as sector finds buyers and short are closing out positions before they get run over.
At this point when equity has a value of 14 mil, it would be cheaper and faster to just convert debt into equity at a price based on last 20 days of trading say .25 and move on, then to go through the costly process of chapt 11. debt/equity owners will see a instant gain as stock recovers to 2 plus dollars. It wouldn't work as well if stock was worth 120 mil and trading at .50 ,but at .05 the conversion looks good.
amazing how shares trade at .06 and they might not even file for bankruptcy. equity is valued at 12 mil at this price.
So Ford traded down to a dollar in 2008, Chapter 11 was touted by all the talking heads, So debt holders accepted stock in exchange for debt @ conversion price of $1.50, As soon as debt crunch was over stock shot to $5.00 plus in 2 months and debt holders/equity holders made a fortune, with out 2 years of chapt 11 fighting and killing the brand. So imagine if you converted current debt into equity how they can make a fortune here. They never said they were going chapt 11 , it is all speculation at this point. It would be a lot cleaner and quicker to convert here for them.
If their intent was to reorganize, why did they repurchase 600 mil of face value last 1/4 for 300 mil, I understand reducing debt, but why UNSECURED DEBT at .50 cents on the dollar? Using the 900 mil in cash they have , they could repurchase all the outstanding debt for say 20 cents on dollar and be debt free with 300 mil in cash left over. Set-up new line of credit as 1st party secured financing. Looks like they have many options here, It reminds me of Sirius Radio like 6 years ago, everyone "thought" it was going to file chapter 11 and stock traded to .05 cents per share , only to not file and stock is now 3.50 plus.
10 PLUS MIL SHORT, Then take into account that there is only 35% of outstanding stock in float. which is 140 mil total on both exchanges. Could only be 60 mil on NYSE. Think what will happen when the need to cover happens.
closed in Russia @ $1.17 with 10x the volume than on NYSE. there is no volume anywhere in the market now. shaking out loose hands, with Greek noise.
Russia to cancel France ship building contract (1.5 Bil US dollars) , Now to be built in Russia, Going to need alot of Mechel Steel for this and Railroad projects.
I guess Credit Suisse doesn't read your messages, as they have accumulated 17,942,833 shares or 5% of outstanding stock.
volume is increasing, money managers will be adding MTL to their portfolio as debt concern becomes muted and MTL is considered stable. The more money flows in and price appreciation continues, the more managers will chase big returns here and put capital to work in MTL and Russia.
All the lenders are coming into agreements with Mechel. VTB says they have agreed on terms and Mechel is paying its debts. It looks like well have final announcements by end of June for all debt to be pushed out till 2018