- Some hedge funds are mounting a last ditch effort to challenge Genco's reorganization plan. Another larger and more powerful group of creditors, investors and managers stand in their way.
- In the two weeks left, vulture investors stand little chance of convincing the bankruptcy judge to tear up a Prepack plan negotiated by management that garnered overwhelming support from creditors.
- The judge has already dismissed their objections once on May 2. If he rules against the equity committee on May 22, as expected, shares could plunge 50%-75%.
- The existing plan is fair and equitable for all claimants, including shareholders, who will receive warrants. Even if these vulture investors wanted to accumulate more shares, time is running out.
- This ploy is a futile attempt to put pressure on creditors to make additional concessions in favor of shareholders by threatening to delay or disrupt the expedited bankruptcy proceedings.