GT40s.com - View Single Post - RF Situation - A bit of information related to other posts

Howard Jones · 03-27-06, 01:47 PM

Mitch, You are right about it taking a long time to sort out. It will.

The other thing is if there are enough liquid assets to make good on secured loans then usually the company in question will "reorganize" and emerge from BK. If on the other hand the company doesn't have the ability the bridge the crises and the banks won't cooperate then the company usually goes under. Since the banks can't be paid off in full most of the assets will be used to partially pay down those loans leaving nothing for other interested parties.

I am not sure if deposits for the contracts with customers for products fall into the secured category but I still think the banks will come first.

Now you bring up a good point about "shielded" assets. I.E. the wife's house, business, community properties, homesteaded residents, etc. If any of these can be included in the settlement and they are of sufficient amounts then they will be applied to secured loans until they are made whole and then other owed parties may be paid as the court directs from the remaining monies.

The trick is to uncover "other" assets and get the court to include them in the matter.

In any case, again you are correct that this will take some time. In Calif we would be talking years.

Think bulldog after a pork-chop.

The hope would be that justice would be complete for all concerned.

03-27-06, 01:47 PM	#18 (permalink)
Howard Jones 10 tenths Join Date: Jun 2002 GT40: San Francisco Bay Area California USA Posts: 1,884 Rep Power: 25	Re: RF Situation - A bit of information related to other posts Mitch, You are right about it taking a long time to sort out. It will. The other thing is if there are enough liquid assets to make good on secured loans then usually the company in question will "reorganize" and emerge from BK. If on the other hand the company doesn't have the ability the bridge the crises and the banks won't cooperate then the company usually goes under. Since the banks can't be paid off in full most of the assets will be used to partially pay down those loans leaving nothing for other interested parties. I am not sure if deposits for the contracts with customers for products fall into the secured category but I still think the banks will come first. Now you bring up a good point about "shielded" assets. I.E. the wife's house, business, community properties, homesteaded residents, etc. If any of these can be included in the settlement and they are of sufficient amounts then they will be applied to secured loans until they are made whole and then other owed parties may be paid as the court directs from the remaining monies. The trick is to uncover "other" assets and get the court to include them in the matter. In any case, again you are correct that this will take some time. In Calif we would be talking years. Think bulldog after a pork-chop. The hope would be that justice would be complete for all concerned.