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Incorporation will provide the owner with a level of creditor protection - most of a corporation's obligations are limited to its assets so this structure can provide protection for personal assets.
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At the same time, neither a joint tenancy nor a tenancy in common provides the same level of protection against creditors as a tenancy by the entirety.
Forging unity could be further complicated by the involvement of the non-banks that bought debt after the defaults.If the required level of support from either creditors or the government proves unattainable, the saga's future could prove to be a lot longer than its past.
Jean-Claude Juncker, the president of the Eurogroup, a forum for euro zone finance ministers, said that the ministers were looking forward to a high level of participation by private creditors in the debt exchange.
"With increasing financial pressures combined with rising unemployment levels, the number of creditors pursuing debts will undoubtedly rise out of necessity.
This could, if used properly, reduce to tolerable levels the spillovers that would result from the imposition of creditor losses.
Dozens of creditor banks also filed suits against AHAB.
The conclusion is that creditor duties, or wrongful trading rules, are superfluous, while private solutions are still inadequate to solve all the agency problems in a way that the proponents of both types of creditor protections aim for.
Debt-to-asset ratio is an index for measuring the debt level of an enterprise and the loan safety level of a creditor from whom the enterprise borrows.
S&P cited a "new level of uncertainty as to the ultimate legal status of Countrywide's creditors after the merger.
Friday afternoon, Standard & Poor's unexpectedly cut Countrywide's debt ratings to junk level, saying the disclosure in the filing brought a "new level of uncertainty as to the ultimate legal status of Countrywide's creditors after the merger".
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