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ByMorStock

09/06/09 10:27 AM

#35831 RE: wall_street61 #35830

Who monitors this requirement?

Are routine monitoring of OBO/NOBO lists part of the BK p0rocess?
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phrantic

09/06/09 10:46 AM

#35832 RE: wall_street61 #35830

GM WS. I've got a question, wondering if you can give some input or anyone else on the board. Do you think it's possible the bondholders could agree to convert their corporate debt to equity, diluting the commons? I believe they can simply agree to accept their semi-annual interest payments and retain the capital of their bonds. Which do you think is more likely? TIA
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stoman23

09/07/09 9:54 PM

#35862 RE: wall_street61 #35830

I have a small brain, Wall. I don't see how that would change what I said about the possibility of a 100% debt for equity swap with creditors, and being able to carry forward the nol's.

Not bashing by the way. I believe there will be equity for the common shareholders when this is over with. Just trying to look at all possibilities.


From the court docs, no section 382 limitations apply if:

At least 50% of the stock in the corporation, after the ownership change, is owned by existing shareholders, creditors that held debt of the corporation for at least 18 months prior to announcement of the bankruptcy case, or ordinary business creditors.