Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TimF who wrote (35710)	6/2/2009 1:00:13 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

From the point-of-view of the Federal Courts (when administering a chapter 11 corporate reorganization) whether or not a few 'vulture investment firms' (investors in distressed debt) or hedge funds make a profit off of their recent 12 cents on the dollar bond speculations, or not, is far less important than if the business can keep it's supplier networks alive, and it's work force supportive, and slash it's debt over-hang because --- without suppliers and workers and drastically lowered corporate debt... the business reorganization will fail in it's primary purpose: To produce a VIABLE business model. (Now... a chapter 7 liquidation is a different beast, where seniority of the equity/debt structure is more sacrosanct, but not so chapter 11. In chapter 11 it is most often the case that the existing equity gets extinguished, and debt holders forceably converted into new equity, and priority of debt claims is frequently juggled in order to produce the ONE THING the court is interested in: a business that can SURVIVE. That is the entire purpose of chapter 11.)