Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.560

+0.4%

3:59 PM EST

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To: shortilong who wrote (21016)	10/22/2002 1:12:30 PM
From: GVTucker	of 21876

Can LUcent (or any other company for that matter) file for bankruptcy protection just because it would be more convenient to run a company without debt and without all those pesky shareholders? Well, no matter what road they take, someone is going to be a pesky shareholder. There's always an owner to a company. Even in a worst case scenario, bondholders would end up being the shareholders. There's just no way to get rid of them unless someone like Bill Gates does a personal LBO. Also, if LU filed Chapter 11 but actually did have sufficient assets to continue as a going concern even if you include the debt, most likely the common shareholders would file suit to prevent their shares from being stolen away from them. Note that contrary to the current myth, most every mutual fund can still own LU. Scan through the top 100 holders of LU common and you've got just about every large investor out there. There's plenty of power to prevent a frivolous Chapter 11 filing. If LU ever files, it will be because the debtholders push them there, not because management wants to be there.

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