As a corollary of this, if the existing shares are cancelled out of existence, and replaced by an entirely new issue, and Meruelo Maddux (and Taylor?) et al. put up a prorata portion of the $10M, and buy the same percentage of the new issue as they currently own, then $200M equity is not eliminated or removed from the hands of current shareholders. Rather, the same percentage of the $200M as the group currently holds is preserved in their same hands. To do this, they propose that all they should have to do is pay a fee of up to $10M. That's why insider groups bid in these situations - they were the ones who designed the Plan and filed it in the first place, both the original and amended versions, for the specific purpose of preserving their equity (and perhaps gaining more), not having it eliminated.