/biz/ - Business & Finance

>>55774247

What Glenn did was try to make the argument that the chapter 11 process was unnecessary and that BBBY was solvent. I never really understood why to make this argument, nor did /ourjudge/ based on the looks he gave Glenn during the hearing. But now it kind of makes sense. The only way to get your make-whole provision is if the debtors are solvent or went into chapter 11 by their own choice. Glenn tried to say that BBBY had the money to operate, and didn't need to go into bankruptcy to attain DIP financing. Holly proved that obviously wasn't true, and that was the end of the chances they had to shut this deal down (or at least get their make-whole). So where does that lead us now? I think maybe this is why the objection to the plan was filed by sketchy parties (predditors and twitter personalities). The final hail mary. Try to make it so that any party in interest can propose their own plan, even if it means bringing up the topic of short interest in court. There's even a benefit to bringing up short interest as long as hedgies control the narrative. They can paint shareholders as unreasonable and crazy while also allowing unsecured creditors to submit their own plan where they get their principal and make-whole. This last part is my own speculation, however, if Glenn is any indication, bondholders are not afraid to make absolutely foolish moves in front of the court if it means they have a chance to ruin the deal.