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

To: TimF who wrote (35589)	5/21/2009 2:54:04 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

Plain and simple reality is "meaningless"????????? <GGG>

To: TimF who wrote (35589)	5/21/2009 2:49:19 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

Re: [Now, as far as your comment "shouldn't be followed"... as I have discussed above, since there ARE NO OTHER PLANS that have been presented to the court for consideration] "Even if that's true, its irrelevant to the question of whether the proposal is a good plan." Ha, ha! Well, if the CHOICE is between: 1) the ONE PLAN that has been put before the court (complete with the extra Billions required to give it a chance of succeeding) and, 2) "No Plan". (Literally: no other formal plan. No funding, no reorganization, no survival... merely a disorderly collapse and loss all around) then I guess I know what plan the debtors would vote for to maximize their returns. (Making the one plan "better then NO PLAN".) <GGG> No, wait... I don't actually have to guess! Since the plan won the votes of more then 94% of all creditors (and no alternate plan was even put forward to the Court), then we already know how the choice between "Plan A" and "no plan" goes! Like I have previously said: Prior to the bankruptcy filing bond holders were offered 33 cents on par value (for bonds many of which were currently trading below that mark). Now, in chapter 11, I think it's probably 29 or 30 cents they will recover in cash (plus a smaller equity kicker). Whereas a disorderly collapse (no chapter 11 reorganization) and then a full liquidation of the company might at best gain them 2 or 3 cents against par (scrap value)... plus no equity kicker. So the vote, (and the total absence of any alternate plan for the Court), is not so unexpected.