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To: Oeconomicus who wrote (146263)	8/27/2002 9:09:26 AM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

"I agree doing a secondary at some point is a necessity and I'd also agree that buying back debt, to the extent it can be done at a significant discount, would then be prudent, but I don't think it is realistic to think they could buy all of it and still get a discount (beyond what discount it takes to bring the yield to market for then-similar credits). " I know for some reason this is not in the realm of realism. However, it would seem to me that a firm that is successful, would pay back their debt with their earnings from operations.

To: Oeconomicus who wrote (146263)	8/27/2002 1:58:21 PM
From: Alomex	Respond to of 164684

Who would write such calls? You don't think trying to "buy calls for the entire amount of the debt" would drive up the price of the debt? For sure, the value of the debt will go up somewhat. Just like with M&As, one better be prepared to pay a premium over face value, but there are ways to put a cap on the max premium. Calls is one, another one is plain asking bond holders to sign over the rights at a reasonable premium, conditional on all other debtors forking off the debt....