Re: Plan is Very Simple
<<But the Court may not be sympathetic to their wanting to accelerate payments on a loan, with principal not due until 2033, that always has been risky for them.>>
Now wait a minute.
The bondholders didn't just wake up one day and say, "hey, we decided we don't want to wait for our money so we want it now." NOVC willing defaulted on a contract and the bondholders are merely asking for what is contractually owed to them now that NOVC has breached the original contract ON THE VERY FIRST PAYMENT DUE after the grace period. It is not the job of our courts to renegotiate contracts on behalf of deadbeats. The creditors have very solid grounds for saying management paid themselves handsomely for failure, then tried to strongarm the debt into new terms and are now trying to use the courts to jam a renegotiation down their throats. There are no employees to save.
You also have the risk equation upside down and backwards. It is the EQUITY that assumes the big risks. You don't get to simply transfer all the risk onto the upper tiers of the capital structure by deploying the BK court.