Actually, I doubt that the lower price has much to do with this news at all. Trading had been suspended as Canadian made its announcement of its debt restructuring, where unsecured creditors were to get 12 cents on the dollar and shareholders (the 18percent that did not tender their shares to AC - dummies) would likely get no consideration. The logical reaction would be to sell sell sell. If you look at the intraday values, the stock opened at $0.25 before the Amex announcement, and proceeded to climb for the first hour before levelling off at the $0.87 range.

I do agree though, that Canadian as a corporate entity will not be around for the long term. Either its creditors will agree to its plan and Cdn will emerge from Bankruptcy protection as a wholloy owned subsidiary of AC, or they won't and Canadian will go bankrupt. Personnally I think that your friend Mr. Milton will do what it takes to secure the approval from the creditors to avoid the political fallout that would ensure if Canadian flames out.

On the other hand, if Canadian does fail, it makes the issue of seniority in the unions that much easier to deal with...