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They were treated unfairly compared to the union, yes. But it still beats Chapter 11 (probably). Update: the more I think about it, the more convinced I am tha
by CWuestefeld 16y ago
They were treated unfairly compared to the union, yes. But it still beats Chapter 11 (probably).
Update: the more I think about it, the more convinced I am that this is true. If the company really had to be liquidated, the bond holders may have been paid off. But the equity holders would have really taken a bath. So the government did, in fact, keep the equity market rolling.
- anamax 16y agoThe bondholders disagreed. They'd have rather had a real bankruptcy. One of the consequences of not honoring the usual rules of debt in bankruptcy is that loans to govt favored industries/companies are now seen as more risky, which makes them more expensive.
- deleted 16y ago[deleted]