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<DIV><FONT size=2>List,</FONT></DIV>
<DIV><FONT size=2>In a chapter 11 bankruptcy, commonly called a =
reorganization,
the bankrupt company is protected from continued harassment from =
creditors while
they "reorganize". The company will attempt to come up with a plan of =
repayment
to creditors, usually at a reduced percentage of the amount owed. The =
first
thing any creditor must do is find out if they are on "the list" or =
schedule of
creditors which the bankrupt company provided to the court when it filed =
for
bankruptcy.Then if they are, or get themselves on the list via the clerk =
of the
appropriate bankruptcy court, the creditor will receive a proof of claim =
to file
with the courts. This will establish the amount of debt owed so that if =
and when
a distribution is available the creditor can get paid.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Realistically, the courts and secured creditors must =
determine
various classes of debtors and the level of entitlement to claims prior =
to any
final bankruptcy proceedings in court. In other words, without =
prejudicing the
court as to priority of claims, classes, or levels of priority, will set =
forth
who gets paid, how much, and when. In most instances some creditors =
may be
classed as necessary for the company to operate and hence may get paid =
ahead of
all other classes of distribution as part of the on-going day to day =
business of
the company, usually controlled by the bank providing operating capital =
to take
care of secured creditors only. </FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I wouldn't count on the claims of piano techs to =
rate very
high, but stranger things have happened. I have seen companies attempt =
to pay
favorite creditors under the table to try and keep certain companies =
(piano
techs?) in good standing only to see the courts take the money back, =
sometimes
years later when they found out that they were treated as preferential
creditors. 'Course when you're dealing with millions of dollars and a =
payment of
a couple of hundred is involved, well, it might slip thru the
cracks.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Good luck to all involved with Baldwin!</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Joseph Alkana</FONT></DIV></BODY></HTML>