Posted Thursday, May 7, 2009 4:19 PM | Contributed by redman822
Six Flags, Inc. announced today the commencement of an offer to exchange any and all of its 4.50% Convertible Notes due 2015 for shares of common stock of Six Flags.
In the event that the Restructuring Plan does not occur, Six Flags intends to explore all other restructuring alternatives available to it at that time, which may include an alternative out-of-court restructuring or the commencement of a chapter 11 plan of reorganization, with or without a pre-arranged plan of reorganization. There can be no assurance that any alternative restructuring arrangement or plan could be accomplished.
Read the press release from PR Newswire via Yahoo.
They also announced that as part of the restructuring plan that they want to to a 100-1 reverse stock split.
What happens to those of us who own less than 100 shares, will I be left with a third of a share, or am I left with nothing?
You can own fractional shares. I threw $50 at Google one month, which at the time was something like .08 shares. It may depend on the broker, but I'm not sure.
They're at 35 cents a share right now. 100:1 reverse split would put them at $35. Do they need to reverse it that much? Or, is a reverse split looked at negatively and maybe they expect it to drop some after the reverse split.
You can own fractional shares.
True. I had stock in one company that was taken over by another, and they offered one share for three of the original. Plus if you have stock in a company that pays dividends and you reinvest them, you'll always end up with fractions of shares.
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