EC is asking for expedited notice on this: requested hearing on 1/20, objections due at hearing.
Myadad dice:
It is directly related to whether bonds should be paid at the note rate or the federal rate and is pertinent to JMW's ruling where she said she had no proof of shenanigans on the par of the bondholders. The EC is trying to provide the proof she said she lacked. The fact that there could be criminal repercussions is just a bonus for us. If nothing else, I suspect if JMW will just sign the order and give the EC the right to explore, this will likely be a huge incentive to bring the Hedge funds to the table. I think we get some real insight into JMW's thought process by seeing how she handles this.
El Juez dice:
Great tactical move by Susman. Glad to see they're still alive and kicking. This is like a foot in the door, from which position they can incrementally fight back against Rosen's so-called "amendments": First, undermine the presumption that the contract rate is "fair and equitable" by showing the actual behavior of vulture hedge funds. With that, the federal judgment rate eliminates all previous "impaired classes", putting preferreds in the money and requiring a new vote. Then, pursue the conflict of interest angle to undermine the GSA entirely. I like it.
