Trump Entertainment Resorts Inc. (fka TRMPQ)

[Cowboy200009]

Here is my understanding of how it works, in or out of CH11 it doesn't really matter.

Debt is exchanged for a specific amount equity( Stock/Shares ) thus canceling the debt.

This generally considered positive and in the and preferred and ideal situation when this happens even if( they are not always issued ) new Shares are issued overall Share value increases due to increased company value with positive reductions in the Debt to Equity Ratio making the company more viable.

Not only does it get rid of related Debt Interest Payments as an ongoing cost to the company it places the original Debt holder along with other Investors subject to market fluctuation in Stock Value.

In reducing Debt to Equity Ratio its other effect is an ability for the company to much more aggressively negotiate any remaining and/or any required future Loans or Debt due to a key market indicator for the Debt Interest Rate and therefore cost being based on the Debt to Equity Ratio.

Just my assessment and thoughts!