imported_River17
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maybe someone can exlpain this to me/us ... but didn't yrc swap bond for stock ... and in case of a meltdown ... I think the bond gets the money first ... then whats left goes to the stock ... so the bond holders just traded something for nothing ... is this correct ?
slackdragon
Seems like many folks here and even on the YRC forum are still confused and think that now is a good time to buy more YRCW stock.
So here is what YRC did to buy more time.
YRC basically gave away the entire enchilada (YRCW) or 94% of the whole enchilada to the bondholders to wipe out over 500 some millions dollars worth of debt for past purchases of Roadway and USF.
So the current stock holders now own just 6% of the entire enchilada.
YRC will do a 1 for 20 reverse split to account for the extra shares they have to give to the bondholders and new owners of YRC.
So if today the current share price of YRCW is around 0.70 cents and you had 100 shares you actually have today $70 dollars. When the 1 for 20 reverse split goes thru after the current shareholders accept the reverse split, you will now own 5 shares instead of 100 shares. So you take 5 shares times 0.70 cents and now you have $3.50 net worth. So you just got wiped out.