Sleep,
Show me a contract where it says that in the case of default and bankruptcy the senior creditors don't have the option to settle with whoever they want. The note I have seen was fully transferable. That is they could sell it to whoever the hell they wanted too. I have not seen a contract that bars them from settling with PN. My guess, based on conversations with reliable involved folks, is that PN will settle with the senior creditors in some way fashion or form over the dispute regarding the first position. May be that PN purchases their position.
Also, RDG, my understanding is that the senior creditors have their own professional witnesses that will provide testimony to make the case that the mill cannot be profitable without a significant investment of time and money, if at all. As such, the senior creditors will claim that allowing major DIP financing will only prolong the inevitable and put the senior creditors in a worse position. They will proceed to beg for relief through liquidation in Chapter 7 in order to cut their losses. IMO, CPRKQ will have to settle with the first in order to get the money they need to move forward in any real way.
You keep saying that the IRS is "primed". I agree, but only for a million. Not so much that senior guys cant walk with their principle. That is all they want. We are all done as far as I am concerned. I agree with Reg.
