Sharing.. you can understand only if you know what a disputer ownership fund as per Treasury regulation.
The plan says class 9 equity interests get cancelled on the date of distribution or Effective Date.So shares will be cancelled.IMO and as quoted in my earlier message from the plan, reorganized debtor will continue reconcile the disputed claims or interests.
As per plan interests are any equity in any debtor including common shares.So the tricky point the shares get cancelled and how do equity see any distributions after cancellation?.In BK cases,these shares could be replaced with escrow cusips to identify the old equity holders, process disputed claims and pay from the disputed ownership fund as allocated and once all claims are completed,whatever is left might get distributed to equity class(es).This is called absolute priority, equity should be paid only when claims are satisfied as agreed.Hope this helps.
