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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: m1o2n3i4c5k6 who wrote (10968)	12/5/2001 10:58:43 PM
From: retiredcfo	Respond to of 99280

M1 & Softie: It's called the preference period and generally defined at 90 days. So the lawyers will challenge every (material) payment in the ninety day period before the filing as a preference payment. Usually, the money gets returned. This will include all the trade vendors as well. Taxes and routine payroll excluded. I was the CFO in a workout; have seen this in action. Ugly. There will be a stunning number of law firms involved. At a minimum: one for the company; one for bondholders, one for shareholders; one for unsecured creditors, one for banks (in all likelihood one for each large position bank). The company has to pay all the legal bills, and the legal bills have priority. And the lawyers have no motivation to move quickly. gm