GREY:PTQMF - Post by User
Post by
wwadehammeron Dec 18, 2013 2:20pm
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Post# 22019240
Who Gets Paid First
Who Gets Paid First How Are Assets Divided in Bankruptcy?
- Secured Creditors - often a bank, is paid first.
- Unsecured Creditors - such as banks, suppliers, and bondholders, have the next claim.
- Stockholders - owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.
Wondering why would bond holders go for this without some sweetener? If bankruptcy and forced sale, I guess the issue for the bondholders is would there be enough money from the forced sale to payoff the bondholders? I didn't see any long term secured debt on the balance sheet. If the bondholders get paid first in a fire sale, they might not go for this unless the price of the attached warrants is lowered from $8.50 to say around ????