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Gold/Mining/Energy : ATPG Shareholders -- Ignore unavailable to you. Want to Upgrade?

To: billgatesisevil who wrote (159)	8/29/2012 4:16:27 PM
From: mrpanick	1 Recommendation Read Replies (2) \| Respond to of 3620

The DIP allows the company to fund some capital expenses and also routine operating expense while in bankruptcy. ATPG legal fees for themselves, the creditors committee and hopefully an equity committe are among the operating and bankruptcy related expenses that can be drawn from the DIP. You are correct that the DIP is the most senior of the debt, however the DIP gets used to pay alot of expenses while in bankrutpcy. That's what the DIP is for - to ensure that the company can pay expenses like approved drilling, rent, salaries , legal fees, etc while in bankrutpcy. Law firms like to represent equity committees and creditor's committees because the court will approve expenses and the company will pay them (monthly I think). It would be hard on the lawyers if they had to wait 2 years or so until the case concluded to get paid.