Like it or not, if the secured creditors had been paid in full allowing the KERP to be paid, it would be prominently and directly stated in the monitor’s reports. That hasn’t happened, instead the 2 secured creditors who receive a small partial recovery were arguing over the details of their distributions up until a couple weeks ago.
Or, instead of looking for words and phrases that can be misrepresented, a direct statement or line item on the cash flow sheets showing the full payment to the secured creditors, $40M over and above the DIP loan, would suffice to make the case. Otherwise, it’s yet another misleading construction to sell bags to others.
