With madness comes opportunity: We are short $WLL because we think its equity is worth less than $0.60. It is simple math: equityholders will only get 3% of the new company plus warrants.
Current prices give the $WLL NewCo an implied market cap of almost $9 billion, a level it hasn't seen even during the best of times over the last 6 years.
With bonds at 20 and with its disclosure statement likely to be confirmed within ~1 week, retail investors piling into this "hot bankruptcy play" will quickly realize what happens to equity in bankruptcy. $WLL
Just as $HTZ is collapsing back down to earth today, $WLL will be next. With momentum on this name finally having reversed, the RobinHood rally is going to send $WLL right back down into pennies.
