1 Dilma could be initially worth f.e. USD1000. PetroBras could pay off the debt with Dilmas.
They lost tens of millions of dollars through their holdings..means nothing to Gates since he makes billions.
Bkim, There may be not just financial but political reasons for a large recap resulting a larger/full ESM ownership in the Greek banks. This investment should be recoverable or even profitable for the ESM as the Greek economy grows.
personally I still hold 50% of my initial NBG-PA position and made money by trading the shares. The recent price action of NBG-PA can be just recoil as we saw a rapid 200% pps increase.
Not likely they'd wipe out common and spare the preferred. Both are toast if they overdo the recap.
The company will exist but maybe not with the current ownership. They may have to restructure their debt and the old common is cancelled and becomes worthless.
Agreed. From their recent SEC fling: "In addition, there can be no assurance that we will be able to obtain the financial and other resources that may be required to finance the acquisition or development of any new business. Due to these factors, as well as uncertainties relating to the ability of Ambac Assurance to deliver value to Ambac, the value of our securities is speculative."
Of course before entering into a restructuring process they would be looking at potential assets sales.
Well, one way out for PBR is that they restructure their debt and bail in the junior and/or senior bonds and swap them to new common.
In this scenario the old common is wiped out or heavily diluted. The preferred shares can be somewhat safer bet?
Do Series A preference shares have any liquidation preference before distribution or payment may be made to holders of the ordinary shares ?
They own shares but there are no loss making shipping operations? Should be low risk and downside at these levels?
Because the price is only 20% lower than PMV then I am sure the shareholders can't do nothing...and this is true especially in Marshall Islands.
Did some DD and if they are able to cancel all the new buildings and get a part of the $37M advance payment back, this company should be able to survive. However the stock won't move anywhere until there is operational profit (a positive EBITDA).
Regarding the CEO Michael B. I believe he is not the sharpest pencil and made huge mistake last year which cost the shareholders hundred million dollars or more. A hired CEO would be fired as incompetent.
However there would have been very few other buyers for the 4 ships. DRYS has made even more radical moves by selling all of fleet and the timing is almost unbelievably similar with PRGN's moves.