I recall we have picked this logic apart prior. The scenario you mention occurs in pre-bk filing. Once a person or firm files it creates an automatic stay for creditors. The court is now in control, not the creditor. So in the example a creditor who is owed $50M on a $100M asset cannot collect per their wishes. They have to follow the rules and payment plan in the bk process.
Regrading audits, you are probably correct on the outside firm audits but the key language that I have read on many reports is "not according to GAAP". That may have changed on the recent reports as I have not been keeping on the reading recently.
The world of bk is extremely difficult to navigate and this one takes the cake. There are so many rules and methods when one item trumps another and vice versa it is crazy. Not a chance someone on the outside knows 100% how this will all end, heck probably on the inside too.
Bottom line to me is we do not get a nickle (or Jers' $5) out of this until the bk ends and some other entity emerges with CTs and OBS tagging along. Also, the longer it goes the higher the pay back percentages per class get the more likely to me a spin off will happen.
Summer is almost here...best time of the year!
News 
Market Data 
Discover 
AI
