While it's quiet...i have a question (sorry not got a clue about the world of finance)
Someone said earlier in the thread that if Hicks went bankrupt, that the other tumor would then take over his share of LFC. But wouldn't that be an asset that his creditors would want sold off to recoup some money?
Ta in advance.
What I said was that we dont know what Kop Holding's company rules say about bankruptcy. It is the actual constitution of the company which is crucial first and foremost.
Some company's have rules which say that shares in the company automatically revert to the company in the event that the shareholder becomes bankrupt. So if Kop has that rule, and if TH became personally bankrupt in the next couple of weeks, then his shares go back to the company, and GG would therefore own 100% of the issued shares. If he wanted to sell half (or all), no-one could stop him.
Alternatively, if Kop does NOT have that rule, then TH's shares would go to the insolvency practioner appointed to handle TH's affairs (called "trustee in bankruptcy" in the UK; dont know what the US terminology is). In that case, the shares could only be sold by the Trustee with GG's agreement. So if GG wanted to buy them, he could.
What the Trustee would NOT be obliged to do would be to help Kop find half of the (approx £320m) debt owed to RBS/Wachovia. So, almost certainly, GG would be happy to agree to TH's shares being transferred to any new investor willing to help clear Kop's debt. The Trustee would also be happy with that arrangement, since it would stop the personal guarantees being triggered, and thus stop TH's debts increasing.
So, one way or the other, GG would have control over who he shares ownership with (or else who he sells to 100%).
But as I said before, I dont think that this scenario is at all likely. I dont think that TH will become personally bankrupt before July.