RE: Covad, Chapter 11 !

[Roeland Meyer <rmeyer () mhsc com>]

Some bond-holders can agree in principle. But, it takes a judge to allow
them to go to *their* backers and help *them* pitch the deal.

> From: Christopher A. Woodfield [mailto:rekoil () semihuman com]
> Sent: Wednesday, August 08, 2001 11:06 AM
>
> I think the one exception to the rule in Covad's case is that 
> Covad seems 
> to have their reorg plan already in place and with the 
> blessing of the 
> majority, if not all, of their bondholders. I have no experience with 
> bankruptcy law, but given the fact that the debt-retiring 
> deal has been 
> made, where is the need to file Chapter 11? To flush out the 
> bondholders 
> who haven't agreed to the stock-for-debt deal?
>
> -C 
>
> On Wed, Aug 08, 2001 at 08:41:07AM -0700, Roeland Meyer wrote:
> > > From: up () 3 am [mailto:up () 3 am]
> > > Sent: Wednesday, August 08, 2001 7:57 AM
> > >
> > > On Wed, 8 Aug 2001, deeann mikula wrote:
> > >
> > > > On Wed, 8 Aug 2001, Smith, Rick wrote:
> > > >
> > > > > Just found this...
> > > > >
> > > > > http://www.internetweek.com/story/INW20010807S0008
> > > >
> > > > i read a similar article y'day, and that was the first 
> that i had
> > > > heard mention of rhythms going down.  either i was too busy 
> > > pulling my
> > > > hair out last month or they were really good about 
> keeping it quiet.
> > > > *sigh*
> > > >
> > > > looks like verizon is gonna be the only xdsl provider 
> left solvent
> > > > when the dust settles.  how scary is that, and how predictable?
> > >
> > > Although this may well ultimately prove true, people do 
> realize that
> > > filing for chapter 11 is not synonymous with going out of 
> business,
> > > right?
> >
> > Show me one case, in the xDSL CLEC business where this has 
> held true. Thus
> > far, *every* one of them, that has filed CH11, has gone out 
> of business
> > within 30 days, as near as I can tell. The track record is 
> pretty dismal.
>
> -- 
> ---------------------------
> Christopher A. Woodfield              rekoil () semihuman com
>
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