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dragon52

09/11/10 5:52 PM

#4174 RE: dragon52 #4173

So.. when you are talking A>L... what exactly do you mean?

What kind of ASSETS?

Current assets. These are assets with dollar amounts that continually change, for example, cash, accounts receivable, inventory or raw materials your company uses to make a product. They are listed on the balance sheet in order of their liquidity, or how fast they can be converted into cash.

Investments. Companies, like individuals, can own securities such as stocks and bonds. Investments, like cash or property, are considered assets.

Capital assets. Think of capital assets, also called plant assets, as permanent things your company owns. Land, buildings, equipment and vehicles are common capital assets. So are things like computers, furniture and appliances, as long as they remain for use within your business and are not items you sell.

Intangible assets. Patents, copyrights and other non-material assets that have value are referred to as intangible.


i.e. the Credit card division that was taken by Chase... that was not part of the bank... was it? if that is considered an asset, do they sell that just to pay commons?
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etzetrade

09/12/10 7:58 AM

#4186 RE: dragon52 #4173

Debtors make the decision. If debtor believe that the new company needs infusion a lot of cash to survive, then common will be wiped out even A>L. The reason is that new company is going to have IPO to get new capital in. With all the old commons there, the new company has no attractions to investors.

We are in the BK11. Judge normally likes to support the debtor let the company survive is the main purpose. Otherwise, go with BK7.