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Non-Tech : MFN Mercury Finance -- Ignore unavailable to you. Want to Upgrade?

To: Michael Peterson who wrote (1203)	7/11/1998 11:15:00 AM
From: R2O	Respond to of 1239

I don't recall ever receiving anything from MFN, ever. Has there been any communications with shareholders? It also surprised me that one can go to ch 11 without any shareholder participation, or even notice. Seems like this would be a 'good' way for creditors to 'buy' a business --- find a willing CEO/board (who may have their own interests) and just declare ch 11, wash the old shareholders away, decide whatever terms seem useful re the loans/etc., and voila --- business as usual except new shareholders. Are there 'rules' for going ch 11? Is the word 'lawsuit' enough? How is it (in MFN case) in the best interests of the (old) shareholders to go ch 11? etc. etc. For instance, the lawsuits that I saw listed had a judgement value of about $60M or so. This doesn't seem like a lot considering what MFN has been tucking away as reserves. Would not be insurmountable problem for the ongoing business. Do the creditors really have a bona-fide concern for their money since, as far as I know, the defaults have been 'technical' and creditors have only gained from events? Does anyone here know the particulars of the loan agreements? Where can I see a copy of them? Did they really leave remedy for a technical default open ended? 'Payable immediately' probably, but no clause related to inability to pay immediately? I am also having trouble making sense of the EDGAR filings. I thought that when making used car loans, the dealer was given only the true wholesale cost of the car on loan inception, thus the loan wrt MFN would be fully secured. As the loan was paid off, MFN gets some, dealer gets some. Is this incorrect? If correct, where are these numbers in the EDGAR filings?