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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (35705)6/2/2009 11:25:58 AM
From: TimF  Read Replies (1) of 71588
 
. Even secured creditors had their priority violated in 8 % of the cases.

8% means in 92% of the cases they don't have the priority violated, and in those 8% quite a few could be much smaller violations as a percentage of the amount (and all would be smaller in total dollar terms).

And that something has happened before (to a smaller extent) isn't an argument that it is not harmful now. The more senior creditors don't actually get seniority the less they will be willing to give any financing discount for what may simply be nominal seniority.

Bankruptcy law provides a considerable degree of latitude to the presiding judge.

True but normally the judge keeps senior creditors senior. Also the general layout of these bankruptcy agreements was driven by the administration, not the bankruptcy judge.
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