"We are creditors of an extremely valuable business and we are extremely concerned about being an involuntary lender" to WorldCom.
Though Mr. Zhivilo no longer owns any stake in the aluminum factory, companies affiliated with him are creditors of the factory and say that the company is still obliged to honor contracts concluded during his tenure.
Because the banking system is rotten, he says, traditional companies end up being creditors of last resort to their customers: "If you're a big company, you're a bank .India's most conspicuous old-economy success, Reliance, escaped the country's shortcomings in the same way that new-economy companies have done, by building its own infrastructure and raising its own money.
Yet the tempest in the eastern Mediterranean is a reminder that depositors, in fact, are also creditors of banks and are potentially at risk.
Creditors whose claims result from acts in, or expenditures for, the administration of the bankrupt estate are not creditors of the bankrupt and are paid before the latter.
The request is being made by creditors of Excite@Home, who are owed hundreds of millions of dollars.
Putting money into a regular account where long-term capital gains and qualified dividends are taxed at 15percentt could be more attractive than being a creditor of the company, especially if the company's finances are the least bit shaky.
The main reason for the post-Lehman contagion was that creditors of other banks and brokers ran for the hills fearing they would lose money, too.
But that figure does not include the 1,000 self-employed drivers and third-party workers EY said would be "unsecured creditors" of City Link and therefore not entitled to any redundancy payments.
Frontline was an affiliate of the Reckson real estate investment trust, but a spokesman for Reckson said the only current relationship is that Reckson is a creditor of Frontline.
