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56Chevy

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56Chevy

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Re: Joe Stocks post# 25

Wednesday, 11/09/2011 3:13:47 PM

Wednesday, November 09, 2011 3:13:47 PM

Post# of 79

What I don't understand is how these convertible noteholders can remove themselves from the creditor class they belong and take the equity.

Creditors run the show in a BK. Period. They have the right to determine who gets what. Equity on the other hand has little to zero control in a BK - and why should they? - they are the "debtors"...they owe people money.

Exchanging debt for equity in this case is a Loan-to-own strategy and it will be done under the legal parameters of a Plan of Reorganization.

Learn something new every time you invest...and take it with you to the next opportunity.

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