former creditor

The company emerged from bankruptcy later that year, with much of its equity held by former creditors.

Companies go bankrupt, then re-emerge with former creditors as the owners.

Amdura had imposed rules that barred its former creditors, who now own 87 percent of the company's stock, from selling those shares until 2006.

The company emerged with a tidy balance sheet and its former creditors holding its publicly traded stock.

The company's former creditors are now stuck holding their shares while they wait for AboveNet to resume reporting its results.

Best of all, every former creditor and equity holder in the firm would have a parallel interest in maximizing the value of its assets.

But a majority of shareholders, including former creditors, have the right to waive that provision, and yesterday the company said a majority had decided to do that.

For example, in the early 1990s, it became evident that the credit scores of people who contacted their former creditors to rectify old debt were actually suffering as a result.

Under the terms of the restructuring, E+Co's former creditors agreed to exchange their debt in E+Co for ownership stakes in the fund managed by PEP.

In addition, some bankrupt corporations are giving restricted shares to former creditors as part of their reorganization plans; these shares may be traded privately but may not be sold in the public market.

BBC South understands any purchaser would need to provide £12m as proof of funds, and assurances they could meet another £20m in repayments to former creditors, Balram Chainrai and Alexandre Gaydamak.

As it happens, Qwest is in a takeover battle now to buy MCI, whose new shares went to former creditors of the company after prebankruptcy shareholders were wiped out; yesterday Qwest raised its offer.

Ironically, of course, Viacom had been the owner of the majority of the programs seen on channel 57's schedule back in 1985, and in fact was one of Grant's former creditors and a part-owner of Combined.

Dwindling Opportunities Since then, he reckons, the supply of troubled debt has shrunk to $135 billion, as Trans World Airlines and other fallen titans have reached consensuses with their former creditors and crawled out from under their former debts.

No rescue attempt was made by the central bank but Althingi eventually decided to resurrect the bank as the largely state-owned Fisheries' Bank of Iceland (Útvegsbanki Íslands), enticing former creditors to accept a stake in the bank as compensation for claims.