"Genco equity panel sees $97-$467M of equity value in company" $GNKOQ $GNK

From leveraged loan:

• According to a June 20 affidavit filed with the bankruptcy court overseeing the case by Rothschild’s Neil Augustine, the panel’s valuation expert, that TEV results in a value in excess of claims that would be available for distribution to equity holders of $97-$467 million, with a mid-point of $282 million.
• Assuming 43.57 million shares outstanding, that translates into a per-share value of $2.23 to $10.72, with a mid-point of $6.47.
• under the company’s proposed reorganization plan, the reorganized equity is to be distributed to holders of the company’s 2007 credit agreement and convertible note claims, as well as to participants in a contemplated $100 million rights offering. Current shareholders are to receive a “gift” distribution of warrants to acquire up to 6% of the reorganized equity at a strike price based on an equity value of $1.295 billion. The warrants are valued at $30-36 million, or $0.67-0.81 per share of the company’s current equity
• The hearing is scheduled to resume today and tomorrow in bankruptcy court in Manhattan, at which time the equity committee will make its case. These sessions promise to be more contentious.

Genco Still At $1.80 Even Though Baltic Dry Index Has Plummeted

Stock price is steady at about $1.80, even though dry bulk rates have fallen 40% from the silly rally in March.