Lot's of questions, not a lot of answers. One thing is certain,. Aurelius will want to be paid ASAP. They win in all scenarios regardless, just a matter of timing. Every day that goes by reduces their annualized return on this bet. February 25th is the day more information should come from those who hold the bonds, not just the portion owned by Aurelius (there's another ~750 million worth of bonds in the same boat as those owned by Aurelius). How does Aurelius get paid for the trade? Option one, Windstream pays them the judgement. Option two, Aurelius cashed in on the CDS they bought and collect their return that way, also transferring the risk of owning the bonds to the insurer who wrote the CDS. Option three, a combination whereby Windstream agrees to pay some of the judgement and Aurelius tops off the difference by cashing in on some CDS. Option four, after conferring with the other bondholders they (other bondholders_ become skittish and just want to get our of the situation as unscathed as possible. This option is the tricky one and likely leads to Chapter 11 and re-organization. Bondholders take a short term cash flow hit as interest payments are suspended, but then reclaim the full aggregate principal plus accrued interest from cash raised by Windstream through asset sales and cash raised through new equity issued under the re-organized company. The biggest loser is existing Windstream shareholders, which already lost most of what they have anyway. Seems to be the most plausible solution.
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There's a fifth option. Government could step in and say this is critical infrastructure and hand hold the process through bankruptcy. Then give the new re-orged company to unions and other groups they like. Remember GM.
These clowns had no plan in case of an unfavorable court decision.
They were telling everyone and their grandmothers that they were going to win.
What a great leader.
This Co. is a joke. Obviously they have the wrong senior leadership in place calling the shots. One bad decision after another.
Chapter 11!
Wouldn't the CFO that setup the problem we are now being penalized for ultimately be responsible? Oh yeah, that was TT.
I don’t think they’re crooks. I believe they overlooked the fine print. Much like customers who get hit with rate increases and call in screaming about the contracted rate.
most likely outcome.
these crooks walk away with millions
and you end up with no job and no severance.
Windstream CEO.....vision.....LOL.
Thanks for the laugh. It will fun to watch all the talking heads attempt to do anything but lie and steal. Windstream needs my skills, but my need for Windstream diminishes daily. Along with my ability to stomach their regurgitations. Pivot, disrupt, accelerate through the turn....
Ffukk offff
Option four also allows the CEO to fast track his vision of transforming the company into something far different than it is today.