1. Those that are purchasing them know for sure that Chemtura will make good on payment on or before exit from bankruptcy.
2. Or, a deal is in the works or already completed that sweetens the pot for bondholders.
It's one thing to gamble with small amounts of money, but we're talking about millions here. These bonds aren't $.02 cents each, they're $90.00 plus. Like Skauble stated, "Idiots do not make million dollar trades on a bond backed by a company in BK unless they have fairly calculated their risk". They obviously have been given some indication that the risk is very low. They know something and it's not about write offs.
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