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Re: FreezeThese post# 4473

Thursday, 08/04/2016 9:37:00 AM

Thursday, August 04, 2016 9:37:00 AM

Post# of 4713
Meaning of "Need to File Claims" document

The reason this was issued by the trustee, is that they are expecting there are going to be some assets available to distribute to unsecured creditors, so that means that anyone who has a claim against the company, needs to file a claim with the court.

Common shares are automatically assumed to file a claim since they will be one of the classes in the bankruptcy, but since they are last in priority, the common shares will get nothing.

The problem is that the assets are far short of covering all of the claims, so the unsecured claims with only get a percentage of their amount, and the common shares will get nothing.

At the moment, it is not clear what percent of the assets are going to secured verses unsecured claims, so we can't tell what the percentage of recovery will be for the unsecured claims, but we can tell what the best possible result will be. If all of the assets went to unsecured claims (which it won't since there are secured claims) the recovery would be $77/$129 or 59%, but it will be a lot less since most of the assets are going to the secured claims first and then share in the distribution with the unsecured claims.

Louis J. Desy Jr.

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