MCI / WorldCom fraud story
jbone at deepfile.com
Mon Jul 28 21:04:40 PDT 2003
On Monday, Jul 28, 2003, at 19:23 US/Central, James Rogers wrote:
> Knowing something about the internals of telecom bankruptcies, what
> with WCOM is consistent and arguably appropriate. It is not some evil
> plot by
> the current administration,
I didn't say it was... I said it was not surprising "given the
> it is judicial SOP for these kinds of situations.
Actually, put on your history glasses. It hasn't always come down this
way. Now, granted, apples / mangoes; the telecom industry today is
unlike it's ever been, and there's AFAICR never been anything really
analogous to this particular situation.
> The US bankruptcy judges (other countries such as the UK operate
> are generally interested in minimizing the overall economic damage of
> bankruptcy, and because of this some shareholders and creditors get
> because paying them off would create more net economic damage than the
> benefit those people would receive.
Sure. That's the theory. And in the large, that's IMHO the right
position for the bankruptcy court to take. But one has to ask: in
this case, was that *really* what happened?
Go check out the bankruptcy docs on the different creditor and
ownership classes. Very interesting.
I'm not complaining about losing cash in this one --- hell, I love
losing bets like this ;-) --- and this isn't a matter of "theory"
either. I'm questioning specifically the plan approved by the
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