Well said Ron.Interestingly, and as you know, the '19 & 20 Snr Notes were trading at $.85 in Apr/May when oil was $10 higher and the company was still paying a healthy divi on the units. Eliminating the unit divi, while painful, is a + thing.
Read the comments to the article by "Chad." He highlighted some the positives that the bearish
article neglected to mention.
Airlines are NO different, yet they DON'T pass along the savings when oil drops. They spout out the "Market conditions dictate pricing" BS...
Those Bonds were 85 when oil was in the $60s this spring. WAY overreaction, priced for $30 oil & Ch 1, yet smoke, no fire....
Remi, Equity in the newly formed co out of Ch11. For Example, A non-fictional company had 1 bill in %15 Senior debt, but only $625 mill in assets. Net of expenses, the Bondholders were offered either, a.) $600 per note cash, or $1000 in stock in the newly formed co which had ZERO debt.
Well said Ronharv. Additionally, I've seen some receivers offer the note holders a choice of either a % of cash or % equity in the new entity which is often owned by distressed debt funds and/or the debtor in possession financier.