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.

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

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.

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.

Some senior creditors have already started squabbling about the way allocations of value were made.

All the stock would be divided among senior creditors in proportion to the sums they are owed.

"At the moment, Macy is the better deal," said one senior creditor who spoke on condition of anonymity.

If bondholders did not exercise their rights, senior creditors would receive Macy's stock.

The new stock may increase in value, while any debt or cash that the company uses to repay senior creditors would not appreciate.

If the senior creditors refuse to make a deal it likes, the firm will simply file for chapter 11 protection.

Some junior issues may end up all but worthless, as more senior creditors get nearly all the assets.

The rest of the value would go to Macy's senior creditors; their claims are backed by collateral, and they must be paid off.

Federated had lined up the support of Macy's influential senior creditors.

First, she realized it was essential to unify the senior creditors, who hold most of the cards in any bankruptcy case.

That debt is subordinate to other bank debt, and so the employees are not senior creditors.

Macy's senior creditors submitted their plan for reorganizing the retailer.

In 1988, the board and senior creditors of Allegheny International hired him to put their business back on track.

Senior creditors are threatening to throw their support behind Federated, the chain's suitor.

That means there is little left over to be distributed to junior creditors, because senior creditors, by law, must get their full share first.