You don't trade below cash value when you have Phase 3 drug that's already been shown to work. Approval at this point is a formality. Sales would be swift as well, there's a huge unmet need for next generation antibiotics.
WASHINGTON — Top U.S. health officials told Senate panels Thursday that $1.8 billion in emergency funding is urgently needed to help protect pregnant women from the Zika virus that has been strongly linked to the microcephaly birth defect that causes abnormally small heads and incomplete brain development.
Tom Frieden, director of the Centers for Disease Control and Prevention, urged lawmakers to approve new funding for Zika prevention rather than taking the money away from efforts to fight Ebola, which has been contained after the massive outbreak in West Africa in 2014 but has not been eliminated.
CHK market cap is 1 Billion. They have about 21 Billion in Assets and 17 Billion in liabilities. So in theory couldn't Exxon or Cheniere step in and purchase CHK for 1 Billion and effectively net a company worth $4 Billion (21 Billion Assets - 17 Billion Liabilities). Moreover, those assets fluctuate based on the price of Oil and Nat Gas, arguably for the right buyer those assets could be worth 2-3x a few years from now. What am I missing?
Related question, could Chesapeake be buying back debt on the open market at discounted prices, effectively reducing their outstanding notes at a significant cost savings? Or is their something that prevents them from doing so?