It's a ploy companies use to legally hide assets they dont want shown in the bankruptcy or else they wouldn't actually be bankrupt. K-mart had billions worth in real estate that if sold at it's actual value could have saved equity but because of an outdated accounting method it was undervalued .
It was only after the case ended and equity cancelled that the current owner (who saw this value early)was able to gain from the true value of the real-estate and capitalised on it's sale to reorganise K-mart.
It may have been that this is what AAOC may have ultimately been after and thus wanted equity eliminated so they could gain the remnants of WMI for their reorganised and PRIVATE WMIH. All IMHO of course!!!!
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