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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (35484)	5/12/2009 9:58:46 PM
From: TimF	Read Replies (2) \| Respond to of 71588

It (the main goal of chapter 11: building a viable business) is relevant simply BECAUSE pursuit of that goal is WHAT LEGALLY JUSTIFIES a bankruptcy court to reorder debt priorities when they legally restructure the company's debts. Its relevant to the situation as a whole but not to the particular point under discussion. Re: "Favoring junior creditors over senior creditors is not necessary to restructure the business." In your opinion. In general terms as a matter of obvious fact. That this situation isn't some special unusual exception could be considered opinion but I haven't even seen a lousy argument for the idea that its necessary to favor the junior creditors here, certainly not a solid argument to that effect. However, if the federal bankruptcy court DECIDES THAT IT IS REQUIRED, then that is exactly what they do. Sure they have the power to impose that condition, but they have no more reason to do so than they do to insist that whatever creditors send their representatives to bow down to the bankruptcy judge will get a larger share. More to the point the proposed setup isn't being initiated by the bankruptcy judge.