Assuming that Congress does nothing, where will the charters end up? Is it possible to get to that state without Congressional action and without receivership?
They would end up with the same companies or they may be able to get transferred via newco. But establishing newcos would have the objective of separating good debt/bad debt. In this case it is a capital stack restructuring via Chapter 11, not a 7 liquidation.
How often do restructurings happen that don't involve newcos? All the time. Isn't the whole point of newcos so that contractual rights bondholders and shareholders have with the old companies can be legally bypassed?
Newcos are designed to come out of bankruptcy with manageable debt by separating good and bad. In this case it is a matter of restructuring the capital stack.
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