Co announced that it and six of its subsidiaries have emerged from Chapter 11 bankruptcy protection after a 13-month restructuring. In connection with its emergence, the company has entered into a $1.75 bln exit credit facility. The exit credit facility is secured by substantially all of the company’s assets. Under the plan of reorganization, all creditors and its debtor subsidiaries holding allowed claims will be paid in full as soon as practicable. In the case of bondholders, payment will be made either through reinstatement of the bonds or in accordance with the holder’s previous election of a cash-out option. Under the terms of the confirmed plan, all of the shares of the company’s common stock outstanding immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganized company.… Please click here or the title below to read more.
The stock has run up on speculation in Barron’s that the stock is a take over candidate. We do not believe that there are any buyers for this stock. Aggressive accounts may consider a short right here around $11.85 for a short term trade. Of course, there is a possibility we are wrong and the stock is taken out; there fore conservative accounts should not follow this recommendation.
All of ZYX Change Method Screens are supportive of this trade.
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