Re: [RT] Worldcom Prefferred

["Don Ewers" <dbewers@xxxxxxxxxxxxx>]

Thanks for youyr input, that is what I believe 
also.
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  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  ira 

  To: <A title=realtraders@xxxxxxxxxxxxxxx 
  href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx 
  
  Sent: Thursday, November 21, 2002 3:23 
  PM
  Subject: Re: [RT] Worldcom 
  Prefferred
  It is my understanding, from what I have heard, that they 
  generate a tremendous cash flow, but it is not enough to service the current 
  debt.  Therefore, they will reorganize into another company, liquidate a 
  great portion of the debt by giving the debt holders an equity interest. 
   The current stock holders, both common and preferred will end up with 
  nothing and the bond holders will be OK.  whether it happens that way or 
  not, that is the rumor that I have heard.  Wish you luck, Ira.Don 
  Ewers wrote:
  04bd01c291a4$44ab0d40$4f2c343f@xxxxxxxx type="cite">
    
    Thanks Ira,
    I think the "void" right now is whether there 
    will be a liquidation or not?  I am hearing not due the importance 
    of their internet backbone.  The common shareholders are screwed I 
    agree, but I am not sure if that also applies to an "cummative" 
    preferred?  I would normally think they are looking at zero also, but 
    if so why are the shares trading a $7.00 today (vesus normal 
    $25.00)?
    don ewers
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      Original Message ----- 
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      title=mr.ira@xxxxxxxxxxxxx href="mailto:mr.ira@xxxxxxxxxxxxx";> ira 
      
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      style="FONT: 10pt arial; font-stretch: normal; font-size-adjust: none">To:<A 
      title=realtraders@xxxxxxxxxxxxxxx 
      href="mailto:realtraders@xxxxxxxxxxxxxxx";> realtraders@xxxxxxxxxxxxxxx 
      
      <DIV 
      style="FONT: 10pt arial; font-stretch: normal; font-size-adjust: none">Sent: 
      Tuesday, November 19, 2002 5:05 PM
      <DIV 
      style="FONT: 10pt arial; font-stretch: normal; font-size-adjust: none">Subject: 
      Re: [RT] Worldcom Prefferred
      to the best of my knowledge the only assets to hold in a 
      company going bankrupt are bonds that are collateralized by hard assets. 
       Preferably real estate.  Equipment is usually a 10 cents on the 
      dollar thing.  If  they can't come up with a scheme to come out 
      of bankruptcy then the scavengers go to work on the bits and pieces of 
      value and  stockholders don't get anything.  Take a look at 
      Global Crossings as a example. Or go all the way back to Penn Central. 
      Don Ewers wrote:
      05b001c2901a$a517e030$0c26343f@xxxxxxxx 
        type="cite">
        

        I forwarded a page from the "pink sheets" 
        that indicates the preferred is trading at 5.75 (annual high was 
        25).  Has anyone on the list had any experience with a preferred of 
        a bankrupt company?  Is this headed for zero or is there any hope 
        to recover the 77% loss suffered?  Any help or insight would be 
        appreciated so i can pass it on.To unsubscribe 
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