Please let me quote from i8bugs:
"This debtor is NOT insolvent, therefore the CS is not worthless"
It is really simple, if you are willing to listen. BK process should not cancel value. If the company makes profit, CS have value, therefore they should not be canceled.
I'd like to take it a step further: If the company makes large profit (as Visteon demonstrated), it is capable of paying off its debt, therefore it does NOT belong in BK altogether.
Like I said on some other board the other day: Management shot themselves in their BK foot by executing well on their 24-point restructuring program implemented some three years ago. First they filed for Chapter 11 protection because everybody and their brother in the industry did, and then they promptly started making money, and lots of it.
Is this a weird BK? Of course it is. This is why I am holding to my core position hoping that the CS will not get canceled down to ZERO. It happens sometimes. Not often but it does. This is what makes it all interesting...
Cheers!
-mm-
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