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Non-Tech : SME(svcdq) has it bottomed out yet? Or will it hit bottom? -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (250)	1/23/2000 7:04:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 305

Bondholders want to either liquidate of speed up the reorganization of SMC. If SMC does not have alternative plans such as spinning off servicemerchandise.com, or tightening the belt and reduce spending to a minimum; the bankruptcy judge could rule unfavourably. However, bankruptcy (chapter 11) is about conservation of financial conditions. And SMC has to summit a plan that is satisfactory to the bondholders or any creditors. A cramdown can be proposed to hurt the secured creditors, bondholders, unsecured creditors, and the stockholders in the present bankruptcy law. We will tune to this process diligently. We hope the management will discuss the spin off with Salomon smith barney and discuss with the bondholders privately afterwards.