Fannie Mae-No Politics (FNMA)

[big-yank]

In such case, a reorganization would likely replace a liquidation under receivership.This is always the preferred judicial outcome. Bankruptcy judges for the Eastern Division are silo'd in Wilmington, Delaware. It is not coincidental that Delaware is one of the few chancery court states where justices are raised under a keen appreciation of Common Law principles (similar to England). It is almost always the goal of the court to reorganize vs. wind up an estate in receivership.

Frequently in such scenarios, old preferred equity becomes new common equity and old common equity becomes Insinkerator refuse to get flushed down the drain. Look at the Blackstone/Skadden material posted earlier today. Just don't post the actual documents.themselves, unless you are certain they are no longer under court protection.

JMHO.