While all settlements are not the same in every case, imo, absolute priority is a template that should be used, however, not strictly adhered to. Example: Not enough money to flow to commons, however, I am sure preferreds would agree on a fair amount going to commons from preferred' share.
We know SNH is in settlement talks to redistribute their funds to EC (as a group), but it is up to the EC to divide amongst the equity classes. We can only hope absolute priority is adhered to.
The variable we have, imo, is Willingham since he owns only commons and what the other EC board members are made up of, however, Willingham is still going to be compensated (via Trustee Lit trust/Liq Trust, etc.) it he takes the either litigation route or settlement route.
If the EC (Willingham) unfairly distributes the $$, I am sure there will be objections to the new proposed reorg plan from either TPS, Preferreds, Dimeq (if the are class 22), etc.
This is assuming there is a settlement of course.
IMO of course.
