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Re: zulual post# 8731

Sunday, 03/18/2012 11:57:20 PM

Sunday, March 18, 2012 11:57:20 PM

Post# of 111133
You keep equity intact to preserve NOLs, but keeping them intact does not mean recovery.

You keep sub bonds/CT to enforce subordination between senior creditors and sub bonds. By doing this the senior creditors get a few extra percentage recovery by reallocation of distribution from sub bonds to seniors bonds. Almost like double dipping.

There is a reason why things are structured this way... it is all for the senior creditors benefit, as they are the ultimate beneficiary, no one else.

imo