Jan. 19 at 4:19 PM
$GOCO This filing is a credit-style behavior, not a liquidation-style
1) This is not what bankruptcy prep looks like
If Centerbridge thought GoHealth was headed for a restructuring or Chapter 11, they would not be doing this:
• They would hold the common as a free upside option
• They would not spend time registering stock
• They would be focused on:
• Debt negotiations
• Preferred enforcement
• Change-of-control protections
• Control rights
Instead, they are:
• Monetizing junior equity
• Keeping senior preferred
• Preserving liquidation priority
• Locking in cash recovery now
They are not touching their:
•
$50M Series A preferred
• 7% compounding dividend
• Liquidation preference
• Change-of-control protections
it’s more
like “We still think this business will survive and throw off enough cash to protect our senior position.”
This is not how a sponsor behaves when they think a wipeout is imminent.
