Does the Global Settlement provide for any distribution or payment to holders of the Debtor’s common stock?
No. The Bankruptcy Code affords priority to the payment of post-petition interest on all allowed claims before any distribution is made to the holders of equity securities. The Global Settlement addresses only the payment of such post-petition interest, as well as professional fees and costs incurred by the Indenture Trustees and creditors of the estate.
Related Questions
- If the remainder of that $80 million or more in interest is paid, will the holders of SEBC common stock then receive a distribution?
- What are the tax consequences of the distribution of new common stock and new warrants to holders of old common stock?
- Does the Global Settlement provide for any distribution or payment to holders of the Debtor’s common stock?
