Such a move would leave unsecured creditors with nothing, he said.

The plan will give unsecured creditors 85 percent of the company's stock.

The unsecured creditors would receive about $80 million in total.

Unsecured creditors would receive less than $500 million of the company's total value.

The plan must also be approved by a committee of unsecured creditors.

Still, it is uncertain whether the unsecured creditors will end up with any money.

The deal includes payments for the team's unsecured creditors of about $2.5 million.

It did not provide a list of secured and unsecured creditors.

"With whole life you're a general, unsecured creditor of the insurance company," he said.

The new offer from Diamond has been approved by the committee of unsecured creditors.