Replies to post #1389 on MF Global Holdings, Ltd. (fka MFGLQ)

[The Rainmaker]

I dont understand if the common shares are getting cancelled why was there so much buying here today?

COMMON SHARES TO BE CANCELLED

According to the POR presented all Equity Interests are to be cancelled.

[zino]

they said that about aamrq,too...speculation money here not savings...lol

[jaxstraw]

COMMON SHARES TO BE CANCELLED

Here are the links and screenshots that tell the truth....not some vague 'email from the company' that just says look at the POR and DS but never says anywhere in that email that common shareholders will get anything.

What it does say is look at the POR and DS.....and that's all it says.

So let's do that....


According to the Plan of Reorganization and Disclosure Statement all Equity Interests ( Class 9A) are to be cancelled.

Common shareholders can not vote to accept or reject the plan because they will be cancelled out and have no financial interest.

Class 9A Common Interest shall receive its Pro Rata
Share of Holdings Ltd.’s Available Cash remaining after all Allowed Claims in Classes 4A, 5A,
6A and 7A and Allowed Interests in Class 8A have been satisfied in full pursuant to this Plan,
consistent with such Holder’s relative priority and economic entitlements in the Plan Trust Stock

Then review the Disclosure Statement for the range of estimated recoveries. Pay close attention to Class 5A and Class 6A.

The Plan Proponents currently do not anticipate there being any recovery to Holders of Allowed 7A Subordinated Claims, Class 8A Preferred Interests, or Class 9A Common Interests,

Now look at 'Estimated Recovery' percentage from the DS for Classes 5A & 6A....

5A - Estimated Recovery 13.4%
6A - Estimated Recovery 13.4%

Not even close to being 'paid in full' ....which is the requirement for any equity recovery.





Now look at Class 9A claims and the 'Recovery' percentage from the same Disclosure Statement....

0.0% for Class 9A Recovery

Deemed to Reject....because there will be no recovery for equity....so Equity gets no vote on the Plan of Reorganization.




So here it is again so everyone can read the percentages of Recovery in the last column..



http://www.mfglobalcaseinfo.com/pdflib/1267_15059.pdf
http://www.mfglobalcaseinfo.com/pdflib/Final_DS.pdf


Because all classes above 9A must be paid in full for equity to receive anything at all.

Basic BK requirements. It's called 'Absolute Priority'.

http://definitions.uslegal.com/a/absolute-priority-rule/