Replies to post #49 on TMST, Inc., 8% Senior Notes (TMA.GB)

[56Chevy]

You're referring to Doc #3 filed the same day Thornburg Mortgage filed for BK protection May 1, 2009.

You're question is concerning absolute priority but to determine that we have to work through some things first.

Homework assignment romang: When did those parties seize collateral from TMA - was it before TMA filed BK ...or shortly after?

If after then their claims would be listed on the unsecured creditor list. No?

[56Chevy]

Regarding priority, consider that the TMA.GB 8% Senior Notes have allready had a partial recovery (explained below in italics). How could this happen if other claims have any priority over them? The answer is - they don't.

Adfitech was a Non-Debtor subsidiary. Senior Note Holders, who had a claim of $304.7 million, received a package of Adfitech securities and cash valued at $38.6 million. For each $1000 in principal amount of TMA.GB, holders received $121.88 in value comprised of $78.26 in Adfitech Inc 8% Sr Secured Notes due 3/05/20 (ADFT.AA), $37.60 (20 shares) in Adfitech common stock (ADFT) and $6.02 in cash. This lowered the remaining claim to $878.12 per $1000 principal amount. The remaining claim is $266.1 million.

That partial recovery is the reason the bonds will be considered "whole" at $878.12 today ...instead of $1,000 each.

The other unsecured creditor(s) on that list of top 20 you cite would not have stood by and let this partial recovery happen if it was legally theirs.