sigsauer, The CTs are worthless. That is why class 10b that the CTs are in are not a party to the auction.
The higher priority classes are and will still receive distributions as assets are sold.
For example; The last balance sheet shows that class 3 has an estimated .849% of their total claim recovery still to come to them from the sale of remaining assets.
Let's say John holds a $1 mil dollar claim against the estate. That means he is estimated to receive another $8,490 in distributions.
So what would someone offer John to buy that claim at auction? For the risk involved they may want a 20% return on their investment. So they may bid $6790, which would give them a profit of $1700 if they do indeed see $8490 in future distributions.
Lets say that some one is hedge fund XYZ. XYZ bids and now holds that $1mil claim against the estate, and has rights to future distributions. The total claims against the estate have not been reduced.
Personally? With just a year to go. I don't see why a creditor that has waited this long would want to sell their claim. On the other hand, if I was an investor I would at least a minimum 10% to 12% return for the risk of holding this debt until the liquidation is completed and all distributions made.
Anyone that sees this consolidation as more than a transfer of debt from one party to another is reading something in to it that is not there and is a fool.
You must ask yourself, if the CTs had any chance of value at all, why would they not be part of the auction? I mean, why not have an auction for class 10b like they do for classes 3 though 9. Probably nothing supports my contention that the CTs are worthless than them not being a party to this consolidation.
The CTs are worthless.
