Replies to post #373 on Bankrupt and Distressed (BAD) Research and Due Dil

[Enterprising Investor]

LEHMQ owns AFB amd WCB.

LEHMQ sells them and gets cash. Who gets the cash? The estate, which has to pay creditors via the plan.

Creditors of a Debtor cannot seize assets of a non-Debtor.

[pinkyringcapital]

uhlmant, I know where you're going with these questions and I like it. Frankly I did consider this before in the Tronox case, i.e. the shareholders keep the unconsolidated subs. Or perhaps even a spinoff. But a friend pointed out to me that the australian sub joint venture probably has agreements for capital etc from the Tronox parent that would be hard to sever. Madclown can probably address this better.