Debtors are discharged in Chapter 7; corporations and partnerships are dissolved in Chapter 7. For an individual, some debts will always stay with you, even after bankruptcy. Some of those “exceptions to discharge,” a.k.a, debts that will are not discharged, include IRS back taxes, debts incurred by fraud, alimony, and child support,
Great video.1) What program are you using to make this video?2) Who decide’s the Equity holder’s plan or the Debtor’s plan is what is executed? The bankruptcy court?
wait….but i thought that the bondholders had no say in the company, they just own debt!!! So one way or the other, the shareholders would most likely get their way unless there was some sort of hidden agenda
When a company goes into bankruptcy….what is the seniority of the claims ? I imagine Bonds have priority, how about prefference shares when compared to ordinary equity ? which one rank superior in the capital structure under bankruptcy
Debtors are discharged in Chapter 7; corporations and partnerships are dissolved in Chapter 7. For an individual, some debts will always stay with you, even after bankruptcy. Some of those “exceptions to discharge,” a.k.a, debts that will are not discharged, include IRS back taxes, debts incurred by fraud, alimony, and child support,
Great video.1) What program are you using to make this video?2) Who decide’s the Equity holder’s plan or the Debtor’s plan is what is executed? The bankruptcy court?
your explanation is very good
thanks
Just have had a loook in GM’s issuing new shares 100 to 1 plan! Sal you are an amazing! Pls. post something about option’s theory.
wait….but i thought that the bondholders had no say in the company, they just own debt!!! So one way or the other, the shareholders would most likely get their way unless there was some sort of hidden agenda
When a company goes into bankruptcy….what is the seniority of the claims ? I imagine Bonds have priority, how about prefference shares when compared to ordinary equity ? which one rank superior in the capital structure under bankruptcy
What kind of arbitrage is that? (buying the bonds when the company files for chapter 11 in hope the new stocks will be worth more).
It’s not arbitrage. It could just be a way to buy the “New Equity” before the “New Equity” really exists.
excellent. very well presented.