"Both Tribune and Gannett plan on buying up their equity amounts," he said.
BRX not only agrees to the capital structure that Petrolink proposes, it also agrees to invest both the first- and second-round equity amounts.
Yet in 1983, the median net financial assets of a family at retirement, aside from home equity, amounted to only $11,000.
Under the old accounting practices, auditors permitted companies to keep such entities off their balance sheets if an outside investor put up all the equity, so long as that equity amounted to at least 3percentt of the total assets.
-- to get to a 25% equity amount based on basic amortization schedules," he says.
Standards of equity amounts given away to investors, angels or advisors in Europe are incomparable with those in the Silicon Valley.
The individual equity amount is not being disclosed, but the total amount of the debt capital portion is up to $1 billion, the company said.
The total payout would amount to $1.4 billion, though that "negative equity" amounted to $717 billion; so, these former homeowners would be compensated for only a tiny fraction of their "negative equity".
Their net financial assets, excluding equities, amount to 3.2 times personal disposable income, compared with a ratio of only 1.9 in America and 1.1 in Germany (see left-hand chart).
