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Non-Tech : FTL- Fruit of the Loom -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (120)	8/14/2001 1:47:07 PM
From: Clement	Read Replies (1) \| Respond to of 161

Arthur: > Banks sometimes got greedy and tries to take all the new > equity and got stuck with the new equity. Management who > does not honor stockholders' value will leave the bankers > hanging on to valueless equity too, later. Seen it too > often lately. At the point when there is a conversion into stock, banks will usually sell out or at least it would be housed in a specialized division or running companies. They are not in the business of owning equities. Those who buy distressed debt (this is a specialized field) can make very significant returns by reorganizing and running a company. They do not care about the shareholders. I do not know the circumstances of the prior bankrupt companies that you were in, but such scenarios are highly unlikely in the event that the appraised current values are below the debt levels -- there is no incentive for any of the debt holders or even management to accept this. Options would be granted in place of old shares for management if they held any, and management would be encouraged to buy into the new entity -- that is only if the vulture firm is progressive enough. Options or bonus payments for hitting key benchmarks is generally adequate to align management interests. > Management take notice, bikinis sell at the same price or > more, but raw material costs less. Synthetic material is > quick drying. Men like it and women like it. Styling is > sexuality oriented. No offense, but this idea is ridiculous and ignores the whole reason that even FTL claims was their undoing -- buying businesses that they knew nothing about. FTL clearly knows nothing about aggressive style businesses, nor do FTL's brands connote sexuality. The operational plan must be to understand what their core business is and leverage off their brand name. To invest into new businesses they know nothing about means that they have learned nothing. Clement