07-22-2015, 07:01 PM
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Confirmed User
Industry Role:
Join Date: Feb 2010
Location: California
Posts: 3,068
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Quote:
Originally Posted by dyna mo
you keep needing to cast it in a negative light, such as your 50c on the dollar comment, so it sure comes across that you're trying to claim it's inherently wrong. interest rates change all the time, debt gets restructured and serviced under new rates all the time, banks vie with one another to buy mortages and all types of debt at lower interest rates. that's not 50c on the dollar, that's the banking business.
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50c on the dollar was a hypothetical. It entirely possible that a liquidation deal could result in 75cents on the dollar...in which case the creditors would likely push for liquidation versus restructuring...especially if restructuring does not have sufficent likelyhood of resulting in payment of more than 75 cent on the dollar. The point is that simply because creditors might "be fine" with a bankruptcy plan, does not mean they are happy with not being paid the full contracted amount. They are just choosing beetween the greater of two lesser options. |
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