Doesn't look at all good for ABTX. IR isn't likely to tell you the truth, even if the PR flacks know it. I hate to say it, but here are some alternatives I can foresee, few of them good -- in rough order of probability as I would suppose, being a complete outsider:
1. Short-term bridge loan to buy time. But see FEET, a Birmingham retailer which was in a similar position, obtained the bridge loan, saw lots of shareholders get suckered into buying back in, and then still couldn't get long term financing and went into bankruptcy.
2. Bankruptcy reorganization. Shareholders are left with worthless options which they can stuff in their shoes for warmth on cold winter mornings.
3. Default and renegotiate the terms with BOA. (similar to #2)
4. Sell some subsidiaries or all of the company - fast. Possible buyers -- foreign corps looking to enter US ag markets.
5. Sell toxic options, dilute the stock to penny status, and pray for a rise in commodity prices. Probable buyers: anonymous Caribbean investment groups that feed, like vultures, off rotting corporate carion.
6. Black knight bond lender, who effectively would own the company. Happens many times. Two I recall from '96-'97: MRV and that gambling tower in L.V. (??). End result in both cases was effectively the same as # 2.
7. Find a new financer - fast. Do you believe in Santa Claus, too?
8. White knight buyer who pays well, the sun comes out, and shareholders bask in higher stock prices. And the Tooth Fairy? |
