Class 3 with an estimated recovery of 21.1%, and class 6a at 26% were both in the disclosure statement. In other words, when it was presented to the small bondholders you had a choice.
Well, class 3 has now collected a little over 26% with more to come. But, I got my 26% over two years ago and reinvested.
They did not stop at 21.1% because as it said in the disclosure statement, it was an ESTIMATED recovery. Keep in mind that the disclosure statement is what is offered up by the creditors committee and trustee showing what they feel is the best way to work to exiting from BK, and what is up for a vote for creditor approval. The recovery could be less or more than the estimate, but the estimates are usually very conservative as what they are saying, is this is the worse case scenario for recovery. Obviously there was no agreement to settle for 21.1% as satisfaction in full as we have exceeded that number now by over 5 percentage points.
When I saw the 26% offer to us small bondholders I was happy to get it, but I also knew that if they were offering us 26% that the larger bondholders would probably see more than 26%.
Personally...I think it is idiotic that anyone thinks the senior bondholders agreed to some estimated satisfaction in full when there is no language in the disclosure statement, POR, or confirmation order that states such. Keep in mind that the disclosure statement is not a binding contract but more of a suggested "road map." The POR is made part of the judges confirmation order, not the disclosure state.
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