In what is likely to be an interesting two days, the unsecured creditors, secured creditors and sponsors of the LBO that paid themselves hundreds of millions in dividends and management fees will meet in New York Jun. 16-17 with a view to reaching a settlement that would result in a consensual reorganization plan. Presumably, that would mean that the plan would have to sweeten the payout to unsecured creditors from the present $0.008 per dollar on their $150 million in claims to something significantly higher. The dividends and payouts totaled nearly $400 million altogether, according to unsecured creditors.

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