The referendum is to answer the question as to whether the Greeks accept more creditor-imposed austerity as the price of staying in the euro.
Creditors – including UK banks such as RBS and Standard Chartered, as well as hedge funds – may be in a weaker position than they would be in the UK, which has a more creditor-friendly legal environment.
The more creditors can determine terms, the less likely it is that Greece's debt burden will be materially diminished.
In contrast, if the judges' ability to identify viable firms is low, a more creditor-friendly bankruptcy law will be optimal.
But lawyers for creditors argued that many more creditors in terms of numbers were in Texas rather than New York.
Losing control of those mills they held separate from American Tissue under the banner of American Paper and leaving even more creditors in the lurch.
With Enron's collapse, the authority became one more unsecured creditor, and officials acknowledged earlier this month that they would probably never recover the $220 million they advanced to Enron.
Or will it simply mean that the insolvent countries have a far more lenient creditor in the ECB than the straight-talking Angela Merkel?
In carrying out the bankruptcies, the administration gained court approval for proposals that reversed the order of priority of the creditors' claims by giving better financial outcomes to junior creditors like funds controlled by some unions than to more senior creditors like banks that had lent to G.M. and Chrysler and investors who owned the two companies' bonds.
The potential misuse of nonpublic information obtained on a creditors' committee is greater at hedge funds than at more traditional creditors such as commercial banks, insurance companies or mutual funds, says Chris Dialynas, managing director at bond manager Pimco.
(Typically, in such a proceeding, there's little to nothing left for shareholders once more senior creditors are paid. In this case, BrightEdge would be considered a creditor, though Searchmetrics is hoping to pay it a whole lot less than BrightEdge might win in a patent suit).
