And if it's much lower, the banks aren't going to give debtor-in-possession financing — and rightfully so.
ANC contends the effort, which began last month, is a crucial step in its bid to become solvent and is permitted under federal bankruptcy laws that give debtors the right to streamline their businesses.
How can debts be mutualised without giving debtor countries an incentive to spend wildly?
For instance, Chapter 11 gives debtors the right to propose a restructuring plan within 120 days.
The definition of bankruptcy arguably gives debtors too much legal leeway, for instance.
If enacted, the new federal law would not take effect for 180 days, giving debtors a window in which they may still file under the old system.
"It's basically a strike threat, but it gives debtors, many of whom have gray hair at this point, a way to act collectively, rather than suffer the agony and isolation of their debt," said Andrew Ross, a New York University professor who is one of the organizers of the campaign.
Sometimes bankruptcy is a preferable route and sometimes a debt management plan - a less formal but ultimately longer arrangement - is a better option.' For people who are in less dire financial circumstances, the advantage with opting for an IVA over bankruptcy is that it gives debtors a chance to get on top of their finances.
These give the debtor the right to impose a restructuring on all creditors, including holdouts, once a certain majority of support for the private sector agreement.
The trouble is that such a system doesn't give the debtor much incentive to keep working, since he doesn't get to keep any of the fruits of his labor.
The breach of fiduciary duty claim would give the debtor the right to sue the parent company board members for damages - presumably at least equal to the value lost in the transaction.
