Invest in prepackaged bankruptcy company & why I bet on abk

1. abk is seeking prepackaged bankruptcy protection, prepackaged BK plan needs share holder approval, this implies that abk will not go to 0, otherwise shareholders will not approve it.

2. Months ago, abk successfully exchanged some 20(?) millions debt into common stocks at a price around 1.5. The debt matures Q2 next year. The reason for current prepackaged bk plan is to avoid default on the debt which matures Q2 next year, if some debt owner is willing to convert debt into shares, then we have more hope the rest will do the same.

3. Last q\'s cdo commutation is very significant. It is more than 16 billion. This dramatically improves abk\'s situation, but people only focus on the potential bk news. commutation is new while bk news is pretty old, at least half an year old. A lot of institute are probably prohibited from investing in company whose share price is under 5 or under 1. Most of retail investors does not know anything about prepackage BK, this could partially explain why abk\'s price is so low. I had a positive experience with investment in a company who did a successful prepackaged bk just months ago. The company is epl, the common share holders only got 5% of new shares after BK, I bought it at 0.38, and sold shares at 8.6 3 months later, with a return about 38%. Pretty cool, huh? EPL currently trades around 10.4. I sold too early. I was not experienced then dealing with prepackaged bk company.

4. Residential real estate crisis has been going on for a long time, and economy is on the rebound, I think the big picture is helping abk.