Chapter 11: Bankruptcy Restructuring

[dadac123]

Thank you,Sal!

I was wondering what is bankruptcy restructuring for a long long time,and I never figure it out,and no one would explain it in a clear way.

But,oh my god,I love your video too much,that you can explain everything in such a short video and makes everything easy to understand!

Love u,Sal!

[MatthewSpielberg]

Interesting way on your animation of Bankruptcy, very nice

[bstunt10190]

If this video confused you, just jump to 13:20, it clarifies everything from there on.

[evilsidd]

At 12:47 you say that the 2 mil out of the 8 mil of new equity will go to the old shareholders, and at 12:35 you say the 6m will go to the debt holders. But the six million does not include the DIP which is the most senior. Can someone please explain this to me

[NoticeOfDefault]

you force the banks to fight each other for the loaf

[jhovanyr05]

First off, I like your video! Great info here!!! BUT what happens if the "old equity" (aka the common shares) is NOT wiped out?!? What happens if the common shares are saved?

[maldarkangel]

thank you xD bandits

[TheLifeImprovement]

This video is pretty interesting, does that make me a nerd? We might be able to work together. I help people who have file bankruptcies get a cash settlement

[dalcde]

It's the "chapters" in the US law about bankruptcy.

[Mendelevium146]

what is this chapter thing what does it mean?

[mediblue9]

So after chap. 11 goes through the bond(debt) holders want to low ball the value of the company? The equity(stock) holders want to high ball the value of the company because then then thye will not lose their shirts?

[windhammer357]

Hi my name is Randy I looking for help I,m in Debt up to my ears in personal loans I have file Chapter 7 before but now I have to file Chapter 11.I,m broke in I can,t even afford a Attorney to get myself out of Debt.I looking to see if anyone no,s a Pro Bono Attorney that could take my case I do have a job if any fee,s are invovled I migth be able to make some payments

[doublecrossedagn]

Salman,

Where can an indiv ch11 debtor get DIP financing in Ch11?

[Az11021083]

Hi i have a question can some body help me plz ok i buy a car from this guy and he is going filled for bankrupcy and he keep telling me that they aré going take my car from me cuz they can go back 3 years he said that they will look id he sale something in the past 3 years they will go back and take it is that rigrh even the car is in my ñame can they still take it plz some body help me

[MisterKwakkles]

Debtors are discharged in Chapter 7; corporations and partnerships are dissolved in Chapter 7. For an individual, some debts will always stay with you, even after bankruptcy. Some of those "exceptions to discharge," a.k.a, debts that will are not discharged, include IRS back taxes, debts incurred by fraud, alimony, and child support,

[CaeserOct]

Great video.

1) What program are you using to make this video?

2) Who decide's the Equity holder's plan or the Debtor's plan is what is executed? The bankruptcy court?

[kusanagiyang]

your explanation is very good :)

thanks

[abab676]

Just have had a loook in GM's issuing new shares 100 to 1 plan! Sal you are an amazing! Pls. post something about option's theory.

[CenseSay]

wait....but i thought that the bondholders had no say in the company, they just own debt!!! So one way or the other, the shareholders would most likely get their way unless there was some sort of hidden agenda

[Ubreako]

When a company goes into bankruptcy....what is the seniority of the claims ? I imagine Bonds have priority, how about prefference shares when compared to ordinary equity ? which one rank superior in the capital structure under bankruptcy

[brokeinvestor]

What kind of arbitrage is that? (buying the bonds when the company files for chapter 11 in hope the new stocks will be worth more).

[khanacademy]

It's not arbitrage. It could just be a way to buy the "New Equity" before the "New Equity" really exists.

[mohakhed]

Thank you Sal! You really explained well.

[elsutero2]

@brokeinvestor It's not a form of arbitrage (but neither is merger arbitrage, and it's still called like that) but the funds usually looking at these sorts of investments are called distressed debt investors or vultures

[angle4everr]

hey i love your videos your soo cool can you make a video about irregular polygons thankz bye=] Fizza

[joao27pt]

excellent. very well presented.

[AMIIZix]

dont ever stop making videos dude for real ^^

[sassy2021]

hmmm...