Originally Posted by
GoHomeLeg
I am simply going to agree to disagree that it is an apples to oranges comparison since I don't believe I could convince you otherwise. However, by all intense and purposes delta actually overpaid by 15.9 million since RJET's current market cap is only 59.1 millon.
Now I understand dip financing isn't actually a purchase of the company but of delta wanted to buy it at its current price it would have been cheaper than what delta just did.
Common stock value is $0 in bankruptcy.
If the creditors committee decides to honor common stock holders, which is rare (AA BK), then those on the other side would get pennies on the dollar. DLs investment is a loan, not a purchase agreement.