Chapter 11: Bankruptcy Restructuring

Chapter 11: Restructuring through a bankruptcy

Category:

Education

Tags:

• chapter
• 11
• restructuring
• 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.

[AMIIZix]

dont ever stop making videos dude for real ^^

[kusanagiyang]

your explanation is very good :)

thanks

[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!

[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

[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?

[mohakhed]

Thank you Sal! You really explained well.

[maldarkangel]

thank you xD bandits