text: If you really thought the equity had any value, you would buy the bonds and make 2.3x your money in the next two and a half months. In order for the equity to be an equal or better proposition than this at the current price, you would need to think that the equity is currently trading at only 44% of its real value (i.e. $3.41).
  Is it possible for STP to do a negotiated settlement, with bondholders receiving around 40 to 50 cents on the dollar? If this was possible, would this be a reason why an investor would purchase the equity in lieu of bonds?
  However, under U.S. law, you can't force a bondholder to take less than the stipulated amounts of principal and interest, except under a plan of reorganization in bankruptcy court (where the absolute priority rule would govern).
  Ok thanks...just trying to find rational reason for the large increase in stock price, while the bonds are still trading around $44.
  
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