RE:RE:RE:RE:RE:RE:RE:RE:RE:secured debt now 89 cents on the dollarRad10 said:
Deferred interest is an accrued liability - you can't add it to cash on hand. Even the kids from the wrong side of the tracks know that![/quote]
You are correct from an accounting point of view (GAAP or IFRS), but not from a financial restructuring point of view. The restructuring will cancel the debt, including the deferred interest, and it will no longer be a liability and no longer payable. C’mon rad10, everyone understands that no matter what side of the tracks he or she is from.
The only question is how much of the company’s equity will the debt buy, and ergo, how much will Remain in the hands of current equity holders. Once we know that, everything else falls into place.