Quote:
Originally Posted by Traum
I suspect the creditors would have more information about NCIX than the general public does -- at least they'd be privy to more financial information than what is publicly available. And with all the info that has gone public, if I were a responsible creditor, I would certainly have looked into those info as well. For me, I would not have very much confidence in the way they were conducting business in the past.
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If a proposal is accepted by majority creditors, the agreement is binding. As the purpose of a proposal is to avoid bankruptcy, NCIX would have every incentive to abide by it. Creditors may also be inclined to accept a proposal, as they might not get anything at all if NCIX goes bankrupt. A proposal is decided upon by the majority creditors, so it'd only be rejected if the majority creditors think there's enough assets to recover in a bankruptcy (which i doubt).
If they live to die another day, you can rest assured NCIX will not be able to conduct business the same way going forward. Seeing as the creditors are also the vendors/distributors, i'm sure they will have some serious controls in place when dealing with NCIX.