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Re: Jacob-03 post# 589

Tuesday, 06/30/2015 10:50:37 PM

Tuesday, June 30, 2015 10:50:37 PM

Post# of 1843

In 75% of bankruptcy cases, APR (absolute priority rule) is violated.

In reorganizations in which such violations occur, "equity holders appear to receive between 4 and 10 percent of the firm’s value".

http://webs.wichita.edu/longhofer/Vita/aprrev.pdf

This is often agreed to for retention of executives and employees, as well as to avoid lawsuits.