secured debt first (i.e. loans that are backed) then unsecured debt i..e creditors then . . share holders
what last release said was the $ they achieved in sale would not even cover what is owed in secured loans so nothing left for unsecured . . and definatly bothing left for shareholders
as to how this can happen without shareholder approval . . dm basically wrote this outcome in stone when he agreed to ridiculous terms for loan .. the lender was good as they 1. received a hige upfront baloon payment 2. received payments each mth with huge interest 3. will get first dibs on whatever salvaged from selling the scraps.
if you are not already angry at dm then it is time to be.
BUD Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
