The money would be used mainly to pay off secured creditors.

This is a problem for secured creditors who may wish to vote.

"The secured creditors took all the assets and left nothing for everybody else."

Then he will discuss the potential sale with the various secured creditors.

The bank would then receive all of its money because it is a secured creditor, he said.

"There could be legislative action making employees secured creditors," she said.

Second, the secured creditor may have the right of pursuit.

Other secured creditors have expressed similar concerns about putting a higher value on the company.

The assets will be used for the benefit of the secured creditor.

At first, all the secured creditors are paid against proceeds from assets.

Secured creditors had asked all board members to disclose their holdings in the company.

We are going to challenge their right to be treated as secured creditors."

Secured creditors are those who had assets pledged to back their loans.

The rest of the company's value would be distributed in cash and equity to the other secured creditors.

The secured creditors argue that Macy is simply not worth more than $3.45 billion.

Therefore, any recovery would not go to secured creditors.

The company offered 15% equity to senior secured creditors.

However, a secured creditor can realise its security separately from the bankruptcy.

The ministry owes $46 million to secured creditors, or those with collateral.

Under the deal, banks and secured creditors will be paid in full - in some cases with interest.

"We have a judgment and are a secured creditor."

It was not clear what the plan held out for Federated's secured creditors, primarily its banks.

The funds contend the sale violates their rights as secured creditors.

The automatic stay does not bar secured creditors' lien enforcement.

Secured creditors would eventually be paid in full.