/biz/ - Business & Finance

Key points
>An investor can aggregate a control position by acquiring debt claims (bonds), anticipating that such claims will be converted to a controlling interest of the equity of the reorganized debtor.

Meaning Class 6 unsecured claims aka bond chads will be converted to equity.

>Investors who purchase sufficient debt claims can influence a Chapter 11 case, particularly with respect to negotiating the terms of a debtors plan of reorganization.

Retail investors are too small of fish for this detail to apply, but it is believed Ryan Cohen has bought up a significant amount of Class 6 Bonds (as well as being behind the DIP and FILO financing) to influence the chapter 11 bankruptcy case. He will absolutely without a doubt preserve his Class 6 interests, which makes way for Class 9 shareholders to be preserved and carry shorts along the ride to fuck them over.