On Thu, 2003-01-16 at 09:33, Mike Larson wrote: > Anne Wilson wrote: > > It's true that if it comes to the 'bitter end' then difficult decisions will > > have to be made, but I want to address the problem of where our money goes. > > Much play has been made of the fact that it will go to pay off old debts, as > > though that were a completely negative position. The reverse is the truth - > > debts mean interest payments and control by outsiders, both of which are very > > much against our interest. Only by getting rid of those debts will they have > > the money and control to pay for the employment of those people we value, and > > who will in the future provide us with the distros that we want to see. > > > > Getting rid of those debts is crucial - make no mistake about it - and cannot > > therefore be seen as a waste of our money. > > > > Anne > > > > > Sorry Anne, but I disagree. If they thought they could somehow pay off > the old debts, they would not have filed for bankruptcy. The _fact_ is > that they have filed. > > Money sent now will go to old debts and be a waste if you are trying to > help Mandrake. The purpose of bankruptcy is to reorganize a potentially > viable company. What probably will happen is that the reorganized > company will have its prior debt wiped out or reorganized into new (and > less valuable) debt and/or restructured equity (new stock.....which is > different from the old, which will probably be wiped out and be worthless). > > For example, see Worldcom. It has huge debts which will be settled for > pennies on the dollar. The stock, once $65.00 is now at $.16, and > probably not worth that. When WCOM emerges from bankruptcy, if it does, > the debt will be mostly gone and a leaner company, with a chance to > survive, will exist. This will not mean much to the old stock and bond > holders, who lost their investments (life is not fair). But the company > will continue to provide (fewer) jobs and their customers will be served. > > So, save your money and send it to Mandrake later, if you want to help. > Otherwise, you just help Mandrake debtors salvage a little more of their > investments. > > IANAL, so feel free to disagree, > > Mike
Whew, what a mule blinder perspective. Where to start on this; guess I'll just pick a place. Like this: > Money sent now will go to old debts and be a waste if you are trying to > help Mandrake. Money that they recieve is controlled by a judge and HE has the say so about where it goes. One of the first places he looks at is the EMPLOYEE PAYCHECKS. So this statement is more than just false, it's a distortion of the facts. > This will not mean much to the old stock and bond holders, who lost > their investments (life is not fair). But the company will continue to > provide (fewer) jobs and their customers will be served. The stockholders losing money is contingent on two things: 1) Chapter 11 protection does not work and the company is liquidated. 2) Chapter 11 does work and the company's stocks never increase. Chances are that if the company does survive, then at some point the stocks are going to go back up. That means that the stockholders that have not sold out still stand a chance to profit. --LX -- ��������������������������������������������������� Kernel 2.4.18-6mdk Mandrake Linux 8.2 Enlightenment 0.16.5-11mdk Evolution 1.0.2-5mdk Registered Linux User #268899 http://counter.li.org/ ���������������������������������������������������
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