Ann: Material Terms of Employment (Chief Executive Officer), page-60

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450 Posts.

15/06/17

16:11

Post #: 25298400
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Originally posted by reader ↑

No, the point of the creditors' meeting is to consider proposals to rescue the company. The creditors have a right to vote but only if they're unsecured. Unsecured creditors are a minor worry in big companies. The real power lies with the secured creditors and whoever offers a rescue package.

The secured creditors are those who hold security over the assets. The unsecured creditors are a sideshow.

You're looking at the most common administration where the company is small.

Administration has no effect on the secured assets. It offers a breathing space for what's left of a company after the secured assets are removed.

If for whatever reason the rescuer (if there is one) wants to keep operating the assets in QIN, he has to persuade the secured creditors to back him first. Then he has to deal with the unsecured creditors (through an administration, if there is one - as there is at TEN) who would probably take less than 100c in the dollar. Then he has to get the shareholders to approve the rescue, whatever it may be.

Your reference to making the debt whole is a misunderstanding. That applies to major debt such as bonds, not to unsecured debt in administrations.

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G'day Reader

Have a read of this and reconsider your last post

What is the voluntary administration process?

QIN Price at posting: 29.5¢ Sentiment: None Disclosure: Not Held
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