||No Intention to Pay Dividends |
The Reorganized Debtor does not anticipate paying any dividends on the
New Common Stock as they expect to retain any future cash flows for debt reduction and to support its operations. As a result, the success of an investment in the New Common Stock will depend entirely upon any future appreciation in the value of the
New Common Stock. There is, however, no guarantee that the New Common Stock will appreciate in value or even maintain its initial value.
||The New Common Stock May be Subject to Further Dilution |
The New Common Stock to be issued on the
Effective Date is subject to dilution from the Management Incentive Program, the Mandatorily Convertible Preferred Stock, and the New Warrants. In addition, in the future, the Company may issue equity securities in connection with future
investments, acquisitions or capital rising transactions. Such issuances or grants could constitute a significant portion of the then-outstanding common stock, which may result in a dilution in ownership of common stock, including shares of New
Common Stock issued pursuant to the Plan.
||Risks Related to Investment the New Warrants |
||The Convertible Noteholders Reject the Plan |
If the Class of Convertible Notes Claims is a
rejecting Class under the Plan, the New Warrants contemplated in the Plan would not be issued.
||Debtor Could Withdraw Plan |
Subject to the terms of, and without prejudice to, the rights of any party
to the Restructuring Support Agreement, the Plan may be revoked or withdrawn prior to the Confirmation Date by the Debtor.
||Debtor Has No Duty to Update |
The statements contained in this Disclosure Statement are made by the
Debtor as of the date hereof, unless otherwise specified herein, and the delivery of this Disclosure Statement after that date does not imply that there has been no change in the information set forth herein since that date. The Debtor have no duty
to update this Disclosure Statement unless otherwise ordered to do so by the Bankruptcy Court.
||No Representations Outside Disclosure Statement Are Authorized |
No representations concerning or related
to the Debtor, the Chapter 11 Case, or the Plan are authorized by the Bankruptcy Court or the Bankruptcy Code, other than as set forth in this Disclosure Statement. Any representations or inducements made to secure your acceptance or rejection of
the Plan that are other than those contained in, or included with, this Disclosure Statement should not be relied upon in making the decision to accept or reject the Plan.