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Biotech / Medical : FPA Medical Management - FPAMQ

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To: tom pope who wrote (742)6/18/1998 4:19:00 PM
From: Vanni Resta  Read Replies (2) of 1110
 
tom,

As long as Chapter 11 is going on, the company still exists and the shares still trade. So everybody, the creditors and the shareholders, would be in a holding pattern. Who gets hurt the most is the person who most needs the tied up money to be working for them. Could be the shareholders, could be the banks. But since banks are in the business of making money from money, I would guess that they would be under more pressure, which was Doug's point.

Overall, what he was saying, I think, was that FPAM can use Chapter 11 as a threat to get the creditors to cave. Would create a great buying opportunity for those who believe, too.

Happy Investing!

Vanni

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