ATPG Senior 11.875% 2nd Lien Bonds (fka ATPG.GE)

[rockraider3]

Unless BP settles before the conversion to chapter 7 is completed, I dont think the bondholders will get anything

Why would this make any difference whatsoever? A chapter 7 is a liquidating trust, but it doesn't relinquish the claims asserted by ATP against BP.

The biggest issue is, which really isn't a change from today, is how does the estate (whether chapter 11 or chapter 7) puruse it's legal remedies against BP? I'm not sure that there will be funds set aside for lawyers on the BP litigation or not. I certainly hope there is.

The point is, whenever there is resolution on the BP matter, if it results in a payment to the ATP, then the funds go to the chapter 7 liquidating trust. Then those funds are paid out to resolve the bankruptcy claims, in the order that they are due.