Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Totally FALSE. Are you not aware of a creditors committee? The Judge determines which classes get to be on a committee. Many times lower ranking shareholders will not get a seat at the table. APR is NOT always challenged but even if it is it is up to the Judges discretion. I refer you to the CBL case in which lower ranking preferred shareholders attempted to get on a committee but the judge declined the request. The APR was NOT challenged and the judge DENIED the creditors committee for preferreds BUT did allow commons to form a committee. How do you think commons which were lower ranked were able to get the same stake in newco as the preferred on an even split basis?

Total garbage which tells me just how much you know about bankruptcy re-orgs. The Creditors Committee is always appointed by the US Trustee pursuant to statute...11 USC 341(a). The US Trustee may appoint an Official Equity Committee but that is totally within the discretion of the U.S. Trustee. The bankruptcy court judge may also appoint an Official Equity Committee on motion of a party with standing, but only if it is determined the company is neither insolvent or hopelessly insolvent.

You don't even know the difference between creditors and equity holders, and preferreds are equity. Jeez.