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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (484377)	5/29/2009 8:03:58 PM
From: combjelly	Respond to of 1574007

"In case of reorganization, debt can be converted to equity, and this takes place, there is an order. Secured creditors first, unsecured creditors way in the back of the line." Not always. That happens sometimes, true. But there isn't a rule.

To: Joe NYC who wrote (484377)	5/29/2009 9:06:53 PM
From: tejek	Respond to of 1574007

This is nonsense. If the BK judge deems it in the best interest of the company, it will do what's best for the company, not the secured creditors. Secured creditors are the company. They get the assets assigned to them. That's not always true. It depends on the BK plan. That's one of the primary reasons for BK court. Where did you get that? Primary reason for BK court is to settle the debts, assign ownership of assets. Chapter 11 is to keep the company from liquidation. I think you're confusing it with Chapter 7. In case of reorganization, debt can be converted to equity, and this takes place, there is an order. Secured creditors first, unsecured creditors way in the back of the line. Putting unsecured creditors to the front of the line is illegal and unprecedented. It is odious enough. Not at all.......its been done before. All parties are getting shorted in the Chrysler deal. Now when you are receiving cash payments from a group with preferential treatment, it is corruption. There you go again......getting all excited over nothing.