HappySqurriel on 31 December 2012
| Dodece said: @HappySqurriel What you are basically suggesting is that Sony can commit credit fraud. No entity has the right to pocket the principal, and to refuse payment when the loan comes due. Sony can't declare bankruptcy anyway, because they are solvent. They can pay their debts in full with interest. They have to provide evidence for their credit worthiness. Before anyone loans them any money to begin with. So Sony definitely isn't under water. |
I think you misunderstand what I am saying ...
It is quite simply a loan modification where the creditors agree to reduce the principle in exchange for equity in the company. There is nothing illegal about it but it is usually only done in the context of bankruptcy though.
