They may then buy the remaining 60 rights from the senior creditors at $1 each.

"There is almost never enough value left over once the senior creditors get satisfied."

Under the current plan, the first in line for that cash would be the senior creditors to the subsidiary.

The most senior creditors will likely get paid all of the principal they lent and perhaps the interest due.

"He's talking to the press because it's the only leverage he has," one senior creditor said.

As chapter 11 is so bad for senior creditors, management and shareholders have a big advantage.

The most senior creditors are always paid first, because they hold the reorganization rights initially.

Those most likely to oblige them - or at least to pretend to - are the senior creditors.

Another senior creditor said, "This puts them in the driver's seat."

Senior creditors are anxious to get the company out of bankruptcy earlier and would be sure to object to any delay.

The plan must be approved by the Federal bankruptcy court and a committee representing Eastern's major creditors.

But being a major creditor gave him enormous incentive.

All three credit bureaus and many major creditors have agreed to accept the affidavit.

But if the strong objections already voiced by some major creditors are not mollified, the deal could fall apart.

Federated, as another major creditor, could also challenge an extension.

Presumably the other major creditors would put up roughly the same amount as Japan, spreading it among themselves according to some formula.

The firm was taken over by its major creditor, Continental Motors, in late 1932.

So here the company was granted an administration order, which led to its major creditor granting funding to continue four building contracts.

Alpenrose Dairy, as the major creditor, gained control of all the stores.

Its major creditors were threatening to sue the company and push it into bankruptcy.

Soon afterward, the state Dormitory Authority, one of its main creditors, moved to foreclose on the hospital.

By the late 1980s, Japan was the main international creditor.

Among the main creditors of One.

Banks were the main creditors, with 68pc owing them money, compared with 52pc the previous year.

As the government's main creditor, it wielded considerable economic and political power.

Intercreditor agreement is agreed between the main creditors of the project company.

This is the agreement between the main creditors in connection with the project financing.

The insurance company and main creditor, Idun, took over the administration of the company, and the ownership from 1932.

Yet the world's two main creditors, Japan and Germany, have less to lend, perhaps much less.

The church was New Spain's main creditor, through mortgages and other financial instruments.