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To: billgatesisevil who wrote (154)	8/29/2012 3:51:54 PM
From: billgatesisevil	Read Replies (1) \| Respond to of 3620

I should explain why these loans are afforded that kind of uber-superior status. The law recognizes that it is better to have a company survive in some form than to have it go into chapter 7. If nothing else, some of the jobs of the employees may be salvaged. In order for them to do so, they almost always require some sort of funding during the period before they emerge. They also are not the best of credit risks. I mean, shit gang, these are companies that are bankrupt. The law thus allows them to seek a loan that will see them through the process till they emerge. Now, are you going to loan an estate money and pray that it doesn't turn into a Dickens novel and have the lawyers eat it with their fees? Not me, and not any DIP lender I have ever heard of. Thus the court allows the DIP lenders to go to the head of the trough when it comes to disbursements at the end of the bk period. Quite simple and logical actually.

To: billgatesisevil who wrote (154)	8/29/2012 5:19:12 PM
From: Area51	Read Replies (2) \| Respond to of 3620

If the DIP loan can't be used for anything except paying back the DIP loan (which is what the original statement literally said) then it is not of much value. I expect it can and will be utilized to pay company operating and capital expenses for the next months so they can keep the lights and such. To say that nobody will get a dime until the DIP is repaid isn't true unless you define who "somebody" is. If you define "somebody" as a debt holder or a common stock holder of the company then you are likely correct. A51