--- John Birrenbach <[EMAIL PROTECTED]> wrote: "The money raised from the [bankruptcy] sale of the [GSE] property will go to satisfy the liens. The $$$'s from the sale of the property will be divided against those who have liens. So the creditors will get some return, how much is determined by the sale price."
There's a flaw in the above statement. Hendry and Nelson hold the mortgage on the GSE property. It's likely that the sale price of the assets will be less than the face value of the mortgage. What is most likely to happen here is that Hendry and Nelson trade their mortgage for the GSE assets and the rest of the creditors get zippo. The mortgage, no doubt, will be given priority over the other creditors' claims. The upshot of all this is that Hendry and Nelson wind up with GSE free and clear of all of its accumulated debt and are then free to restart the plant, which will again be viable after stiffing the other creditors. Now the judge may be able to prevent this by disqualifying H&N from bidding. I wouldn't bet on that happening though. These guys may not be the most ethical people around but, give them credit, they're not bad financial engineers. Charlie Swope Ward 1 _____________________________________________ To Join: St. Paul Issues Forum Rules Discussion Email: [EMAIL PROTECTED] ____________________________________________ NEW ADDRESS FOR LIST: [EMAIL PROTECTED] To subscribe, modify subscription, or get your password - visit: http://www.mnforum.org/mailman/listinfo/stpaul Archive Address: http://www.mnforum.org/mailman/private/stpaul/
