The plans, secured plan vs former CEO
I think the problem is that the CEO plan to take over the company, gives the debt holders less than if the debt holders took over the company.
I also seem to remember that part of the plan was to issue new debt. A big negative against the plan is that, I am sure, the secured and unsecured do not want one of the people, the former CEO, who captained the company into disaster, to be back in charge again.
If the former CEO wants to really take over the company again, the only thing he has to do is buy out the secured debt at 100% cash, and then he could do whatever he wants. The fact that the secured are objecting tells me that while the CEO's plan is 'valued' at $300 million, is it not really worth that much, otherwise the secured debt would gladly take the cash and get out of this mess.
Louis J. Desy Jr.
