You are correct. Elliot is buying the company by purchasing the debt, not by making common stock holders profitable. Rather than pony up the cash, the backstop plan offers creditors and those with liens the option to purchase reorganized stock at a premium. The pension plans are handled separately in the offering. Nowhere is there any indication that classifications of interested parties junior to Class 6A are receiving a distribution under the Plan. All shares of stock are equities. Not all equity is stock. All stock is not equal, e.g. preferred and warrants, nor does it need to be public. Purchasing a share of stock is purchasing the right to share in profit, the company is bankrupt.
http://www.kccllc.net/windstream/document/1922312200626000000000006 P 17 BB.Confirmation of Plan Over Non-Acceptance of Impaired Classes (11 U.S.C. § 1129(b)). 30.The Plan may be confirmed as to Classes 6A and 9 (the “Rejecting Classes”) pursuant to section 1129(b) of the Bankruptcy Code, notwithstanding that the requirements of section 1129(a)(8) have not been met with respect to the Rejecting Classes, because the Debtors have demonstrated by a preponderance of the evidence that the Plan (a) satisfies all of the other requirements of section 1129(a) of the Bankruptcy Code and (b) does not “discriminate unfairly” and is “fair and equitable” with respect to the holders of Claims and Interests in the Rejecting Classes. P 18 32.The Plan is also “fair and equitable” with respect to the Rejecting Classes. Specifically, no holder of any Claim or Interest that is junior to Class 6A (Obligor General Unsecured Claims) is receiving a distribution under the Plan, and no Class of Claims or Interests senior to Class 6A is receiving more than full recovery on account of its Claims or Interests. P 58 CC.Cancellation of Existing Securities and Agreements. 116.On the later of the Effective Date and the date on which distributions are made pursuant to the Plan (if not made on the Effective Date), except as otherwise specifically provided for in the Plan or set forth in the Description of Restructuring Transactions: (a) the obligations of the Debtors under the Credit Agreement, the First Lien Notes Indenture, the Midwest Notes Indenture, the Second Lien Notes Indentures, the Unsecured Notes Indentures, and any other certificate, equity security, share, note, bond, indenture, purchase right, option, warrant, or other instrument or document directly or indirectly evidencing or creating any indebtedness or obligation of or ownership interest in the Debtors giving rise to any Claim or Interest (except such agreements, certificates, notes, or other instruments or documents evidencing indebtedness or obligation of or ownership interest in the Debtors that are reinstated or amended and restated pursuant to the Plan), shall be cancelled
News 
Market Data 
Discover 
