The delimma.
The primary obligation of the Debtor/management in bankruptcy becomes satisfying claims.
What does it mean? Shareholders are left to fend for themselves unless the firm becomes "solvent".
The company is the Debtor in Possession. Messrs. Meruelo and Maddux are shareholders along with us. You might deem it semantics.
Restructuring debt is nothing new for companies under bankruptcy protection or the hundreds of borrowers per day my employer is attempting to keep in their homes. Millions are looking for a break.
Creditors are rarely allies of Debtors, but the "Friendly Committee Members" postponed all attempts for an alternate plan (or plans). Since you utlize PACER, I am sure you read that one plan called for paying all the creditors in full and retaining current equity holders. Why? In order to utilize the NOL's, existing creditors and equityholders must retain 51 percent of Newco.
Asking me to identify them would be impossible. I do not have any confidential information on this subject.
The Creditors are arguing LaSalle for a reason. All they want is open market solution. In this role, they are acting as our ally. We current have no committee of our own, but they are funding a solution for themselves, which may benefit all shareholders.
Opening the proceedings to competition may result in more than two proponents. Meruelo & Co. can then call or raise the pot.
If you aren't an Enterprising Investor, become one—you'll love making money like Benjamin Graham.
AI
