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ProVobis
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Or each district in the case of Maine and Nebraska. But there is no national popular vote, though pollsters generally don’t see it that way.
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Ridgerunner
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The assertion isn’t fair.
In Chapter 11, there is an “unsecured creditors’ committee” that has a lot of power. Its purposes is to enforce the claims of the unsecured creditors. There is also a rule called the “Absolute Priority Rule” that says the company has to pay all creditors in full if its owners can keep anything.
Some creditors don’t keep good records. Some make outrageous claims. The judge rules on their reliability, in whole or in part. If the judge says the claim is legitimate, it has to be paid or the owners lose all equity in the company. The judge has the power to reduce claims to their real value.
That’s not to say all of the creditors are happy. Undoubtedly, some are not.
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ProVobis
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Creditors are not always equal in bk cases. I know all about it being a preferred stockholder in the Conseco bk of 2002. Banks and bonders were made whole, preferreds got little, and the owners got dissolved.
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Ridgerunner
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I have never heard what happens to preferred stockholders in Chapter 11. But I don’t know that there were any in the Trump company cases. I assume they would be subject to the “Absolute Priority Rule” too, since they’re not actually “creditors” but a classification of equity owners.
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ProVobis
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I added a sentence in my reply.
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Ridgerunner
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I just read your addition, and am not surprised that was the result.
Generally speaking, secured creditors come out the best, if they can keep secured and not subjected to a “cram down” where their interest in the security is diminished. Unsecureds come out second best unless the creditors’ committee can undo some secured creditor’s position. Preferreds next, and ordinary stockholders dead last.
Generally speaking, secured creditors come out the best, if they can keep secured and not subjected to a “cram down” where their interest in the security is diminished. Unsecureds come out second best unless the creditors’ committee can undo some secured creditor’s position. Preferreds next, and ordinary stockholders dead last.
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sallybutler
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Do they get paid the full amount, or pennies on the dollar?
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Ridgerunner
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They get the full amount if the owner is allowed to keep any equity in the company. If they don’t, then the owner is divested of his interest in the company and it’s sold to someone else with the proceeds paid to the unsecured creditors.
It’s my understanding (could be wrong, but nobody has said otherwise) that Trump was able to keep his interest and later sold it. If so, the “Absolute priority Rule” would require that all unsecured creditors be paid in full. That doesn’t mean every claimed amount is paid just because it’s claimed. Judges rule on whether the claim is legitimate or not.
It’s my understanding (could be wrong, but nobody has said otherwise) that Trump was able to keep his interest and later sold it. If so, the “Absolute priority Rule” would require that all unsecured creditors be paid in full. That doesn’t mean every claimed amount is paid just because it’s claimed. Judges rule on whether the claim is legitimate or not.
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ProVobis
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That’s why owners and common shareholders try to find buyers for the company while in bk Court. They can personally gain while the creditors and contractors lose. (If there is no ownership, creditors are at risk of losing everything.)
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Ridgerunner
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Both things can’t happen in Ch 11. I think you’re thinking about something else.
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ProVobis
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Look at Sears. A new owner just got financing to resume operations in many malls. The financing wouldn’t have been possible had the company still been in debt.
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Ridgerunner
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I’m not familiar with what happened with Sears. But it sounds like a “white knight” stepped in. Sometimes when that happens, the old stockholders and officers get the boot and the judge reorganizes the obligations. It doesn’t mean they all go away, necessarily. And sometimes, creditors are given equity positions if there’s not enough money in a liquidation to pay them.
Whether or not it is equivalent is irrelevant. For the election of a president, each state holds a popular election
I provided a link that confirms a popular election in each state.
Precisely…JonNC:
Or each district in the case of Maine and Nebraska. But there is no national popular vote, though pollsters generally don’t see it that way.
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grotto
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Maybe you should learn about how our elections are conducted - the electoral vote is the decider!
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ProVobis
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Not all shafting is resolved by Chap 11. If someone owes a few thousand dollars for work performed and refuses to pay, he might not be taken to court because of prohibitive legal costs to the other person but that doesn’t mean he won’t accumulate enemies and a less-than-good reputation.
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ColorMomma
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I know how the electoral college works. Trump lost the popular vote by almost 3 million. He was not “chosen by the people.” The majority did not vote for him. Maybe you should learn some math.
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robertmidwest
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This was the new wall built under Trump? Or the outdated wall that needs replacing?
Edit: It was the older wall…
This is not Trump’s wall. Exactly why we need an updated wall.
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sallybutler
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So is the money to repair the existing wall or build new sections without repairing what is broken? If both, how much for each?
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robertmidwest
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Trump moves goalposts on border wall, says 500 miles of replacement fence would be good enough
WASHINGTON - Locked in a showdown with Congress over border wall funding, President Donald Trump moved the goalpost on Tuesday by suggesting that...
www.dallasnews.com
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