STP is a short, not just for a trade, but it’s going to zero. They won’t be able to pay up when their bonds mature in 54 days. The Countdown here. More info here, and here’s a quote.
Every day that ticks by without an announcement of an exchange offer is raising the probability of a default and liquidation. Perhaps a month before the maturity date, it would be likely that the company would default if no exchange offer had been announced by then.
Consider yourself informed.
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