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To: GST who wrote (131926)	9/27/2001 9:23:50 AM
From: Alomex	Respond to of 164684

Why would they get anything at all? It is my understanding that recently there have been some "friendly" bankruptcies where shareholders end up with a little bit of equity. I might be wrong though...

To: GST who wrote (131926)	9/27/2001 9:57:04 AM
From: Oeconomicus	Read Replies (1) \| Respond to of 164684

...demand that the shareholders be stripped of anything of economic value? If the creditors saw selling off the assets to the highest bidder as the only path to recovering anything, and if the price wouldn't cover the debts, then yes. If the creditors think it can be reorganized, their odds are improved if it is a friendly, voluntary deal. In the communications svcs arena, Covad comes to mind as representative of the latter (they made the deal with creditors before hand and while they still had cash), Rhythms and Northpoint the former. In this case, I doubt liquidation would result in much in the way of proceeds for creditors, so they'd probably see a reorg effort as giving them much better odds of getting whole. JMO, Bob

To: GST who wrote (131926)	9/27/2001 2:34:50 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

"of which current shareholders might end up owning 0-20%" Why would they get anything at all? Would the parties whose ox is being gored -- ie. lessors of warehouses -- not demand that the shareholders be stripped of anything of economic value? GST, Shareholds of common equity will receive nothing. First in line will be the attorneys. The next is the Landlords of the DCs and finally the remainder will go to the vendors. If some bizzare situation occurs in which after the vendors are paid and there is still something left over, that will go to the first zero coupon bondholders.