[Hostage]

BS. When KMart went bankrupt, the trustees were ‘persuaded’ that their net liabilities exceeded their net assets and hence declared that the common shareholders would be wiped out.

A panel of common shareholders discovered that KMart’s real estate holdings had been severely almost by intention (wink) undervalued and they filed a motion with the court to order new appraisals. The court so ordered and the new appraisals showed net value over liabilities thereby enabling the common shareholders to have a seat at the table.

The vultures in this case were similar to Bain in that they maneuvered to create a false image to the court in order to enrich themselves. But they lost.

That’s vulturism.

[skinkinthegrass]

A panel of common shareholders discovered that KMart’s real estate holdings had been severely almost by intention (wink) undervalued and they filed a motion with the court to order new appraisals. The court so ordered and the new appraisals showed net value over liabilities thereby enabling the common shareholders to have a seat at the table. The vultures in this case were similar to Bain in that they maneuvered to create a false image to the court in order to enrich themselves. But they lost....That’s vulturism.
thanks, good explanation of what happened...