Well, under the current plan all equity shares are to be canceled, but shareholders are arguing that the company is undervalued. A shareholder committee stated in a court filing that the company's operating results far exceeded expectations and that they believe that significant value is being squandered.
The shareholders’ motion, filed Friday, comes before an April 13 hearing to decide if Visteon’s bankruptcy plan should be sent to creditors for a vote.
So, it looks like there are some people betting that the shareholders may delay the bankruptcy proceedings and might get some sort of payout . But, to me it looks like it is a short term catalyst that a lot of day traders probably jumped in on and made a quick buck. No sense in buying in now, there probably a lot of sellers looking to off load some of the paper, so don't get involved.
Pinnacle Foods' new $850 million covenant-lite term loan is trading in the 100.375-100.625 range after the facility broke for trading this afternoon, sources said. The loan was sold at 99. The new term loan has a spread of L+500 and carries a LIBOR floor of 2.5%. This credit facility backs the company's acquistion of Birds Eye Foods.
Syndicated Loan Market Commentary 08/20/2010 [View instapost]
Loan Market Commentary 04/01/2010 [View instapost]
The shareholders’ motion, filed Friday, comes before an April 13 hearing to decide if Visteon’s bankruptcy plan should be sent to creditors for a vote.
So, it looks like there are some people betting that the shareholders may delay the bankruptcy proceedings and might get some sort of payout . But, to me it looks like it is a short term catalyst that a lot of day traders probably jumped in on and made a quick buck. No sense in buying in now, there probably a lot of sellers looking to off load some of the paper, so don't get involved.
Yesterday's Trading Recap [View instapost]