<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B Watson:
1) Given the depressed state of the industry in general, it would be a very bad time for the creditors to force a 7 since the liquidation values of the assets would be at an all time low. Plus, careers play better when you have a potential to recover your loss rather than just take the write-off.</font>
But this is a decision many VC's are having to face now. Throw more money down the sinkhole in the hopes of recovering your original investment, or simply bite the bullet and liquidate.
I've seen estimates that not counting common shareholders, the current exposure by debtors is on the order of $2B. If they pour another $1.5B into UA and UA continues to lose money, the losses could snowball from $2B to $3.5B.