The slience is deafening – yesterday was supposed to be “Exit Day” for the Citadel Bankruptcy plan – all the banks had signed up on cutting their debt, and taking all of the stockholder equity. Aurelius Capital threw in about $1 million into “worthless” Citadel Stock to make the case that Citadel has grossly undervalued its assets and is funneling equity that should belong to the stock holders into the pockets of the management, who has not been fired.
So far, no word on what is happening. If the judge had just signed off on the creditor plan, this would be over by now. Does Aurelius have a valid point or are they just playing bankruptcy litigation to make a quick buck by threatening to stall the company in bankruptcy?
As of 3:20 (3:05 with 15 minute delay), CTDBQ was down 30% for the day – down to $.09 a share – Aurelius had paid about $.07 a share…
