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Gold/Mining/Energy : Thermal Control Technologies Corp TCT (was Redux Energy) -- Ignore unavailable to you. Want to Upgrade?

To: M. Merriam who wrote (985)	9/8/1999 10:02:00 PM
From: Nathan Hansen	Read Replies (1) \| Respond to of 1208

I think that this is a case of "either/or". There are cases for both. To my understanding it is then in the hands of the debenture holders to decide solvency issues.

To: M. Merriam who wrote (985)	9/8/1999 11:07:00 PM
From: Edward W. Richmond	Read Replies (1) \| Respond to of 1208

Mike, I just checked in one of my textbooks. I believe I was correct. It states that a debenture is a corporate bond that is not secured by specific property. If the issuer is liquidated, the debenture holder becomes a general creditor. The higher risk usually requires higher interest rates than those on secured debt. My take is that the non-payment of debenture interest does not result in default, whereas non-payment on a secured bond is game over. Regards, Ed