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Microcap & Penny Stocks : OILEX (OLEX) -- Ignore unavailable to you. Want to Upgrade?

To: Marty Rubin who wrote (3979)	9/4/1998 7:25:00 PM
From: Steve	Respond to of 4276

Marty, Under bankruptcy laws the creditors must be compensated eventually (debts are not forgiven even with bankruptcy protection) as they are first in line in any liquidation of company assets. Since it is a chapter 11 and not chapter 7 Saul hopes to reorganize and pay back the creditors through the court mandated payment schedule. If instead he opts for liquidation the chapter 11 would become a chapter 7 and that would put the creditors first in line and the shareholder's last in line. Even in a chapter 7 Saul comes out okay but will the other investors? But my point was that Saul had a choice to work with the creditors and not subject the shareholders to a further decline in the stock price. begin=========================== For your edification I present the chapter 11 federal code concerning the rights of creditors: (a) A proof of claim or interest is deemed filed under section 501 of this title for any claim or interest that appears in the schedules filed under section 521(1) or 1106(a)(2) of this title, except a claim or interest that is scheduled as disputed, contingent, or unliquidated. (b)(1)(A) A claim secured by a lien on property of the estate shall be allowed or disallowed under section 502 of this title the same as if the holder of such claim had recourse against the debtor on account of such claim, whether or not such holder has such recourse, unless - (i) the class of which such claim is a part elects, by at least two-thirds in amount and more than half in number of allowed claims of such class, application of paragraph (2) of this subsection; or (ii) such holder does not have such recourse and such property is sold under section 363 of this title or is to be sold under the plan. (B) A class of claims may not elect application of paragraph (2) of this subsection if - (i) the interest on account of such claims of the holders of such claims in such property is of inconsequential value; or (ii) the holder of a claim of such class has recourse against the debtor on account of such claim and such property is sold under section 363 of this title or is to be sold under the plan. (2) If such an election is made, then notwithstanding section 506(a) of this title, such claim is a secured claim to the extent that such claim is allowed. ================================end. begin=========================== Here's some more definitions in clear, plain language: "There are two basic types of Bankruptcy proceedings. A filing under Chapter 7 is called liquidation. It is the most common type of bankruptcy proceeding. Liquidation involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors. Under Chapters 11, 12, and 13 a bankruptcy proceeding involves the rehabilitation of the debtor to allow him to use his future earnings to pay off his creditors. Under Chapter 7, 12, 13, and some 11 proceedings a trustee is appointed to supervise the assets of the debtor. A bankruptcy proceeding can either be entered into voluntarily by a debtor or initiated by his creditors. After a bankruptcy proceeding is filed, for the most part, creditors may not seek to collect their debts outside of the proceeding. The debtor is not allowed to transfer property that has been declared part of the estate subject to the proceedings. Furthermore, certain pre-proceeding transfers of property, secured interests, and liens may be delayed or invalidated. Various provisions of the Bankruptcy Code also establish the priority of creditors' interests." ================================end. "Obstructive language" what in the hell are you talking about? Obstructive language as a phrase could mean language that obstructs the reader from grasping the author's true meaning but here obfuscation or obfuscatory language would be a better choice. But using deliberately obfuscatory language could be a sign of a high IQ. You know Marty that intelligence is directly correlated with facility with language. I have found over the years that most people lack writing skills and are often so baffled by language that their writings are simply a series of primitive grunts. Are you sure of the spelling and meaning of the word "obstructive"? Grunt once for no, twice for yes. Thanks for taking the time to respond.