Given the not-surprising losses due to bankrupt in-fighting, I think the safest and quickest way to resolve this fiasco is to voluntarily file BK for the entire enterprise - everyone should take a haircut not just the second priority seniors holders and below, but everyone including Apollo and other greedy first priority.
Otherwise, I agree with with the second seniors and fight this to the end! We should not be left holding the bag to the benefit of the first seniors! Again, this is not how an indenture is supposed to be interpreted - where you can change the goal posts as you see.
Sentiment: Strong Sell
Again, i can recall one or 2 companies that have emerged from BK "intact"
General Growth Properties
GT is neither of these companies. BUT if GT can
1. Get $440M in debt wiped clean
2. Walk away with $300M in assets
3. TG is gone
then that is worth more than 26 pennies
Not saying it can get there but we now have a range. I still believe the intellectual property that they fought so hard to retain had some value and likely worth more than $1.
It didn't sound like apple is taking the warehouse which means GTAT keeps the real estate? I know Apple announced a data center in Mesa. Perhaps taking the real estate is part of the debt forgiveness but it didn't sound like it. Be curious is the warehouse changes hands between GT and AAPL.
Sentiment: Strong Buy
If the CZR were in good standing, would they have moved the assets away from the 2nd priority senior secured and other sub/mezz debt holders? My guess is they would not have transferred the assets out of their reach.
Which means, Apollo, et. al purposely orchestrated the collateral transfers away from the rightful owners of the apportioned assets for the sole benefit of Apollo and the other hedge funds which is a violation of the indenture.
There is absolutely no reason this company should be trading at current levels. CZR should be forced involuntarily into BK in it's entirety to sort out under bankruptcy proceedings and under the protections of the courts.
I ask the question again - why bother with an indenture? What is the point of having senior debt v. subdebt v mezz debt if you're going to change the terms of the indenture. Just call it debt! Apollo effectively pulled the run from under the Second Priority Senior Secured Holders.
The whole point of the contract/indenture and the capital structure is to identify order of claimants for one. Changing the order of claimants to the benefit of Apollo, et. al, is an issue that judge has issues with.
Put the entire company in BK and let the courts settle it fairly.
Why would anyone settle for a few hundred million? The right path should be to organize in bankruptcy with ALL assets and let the apportionment ensue. The value of the apportioned assets are worth more than the scraps that Apollo, et. al. have offered.