The unsecureds see off-balance sheet money: proceeds from litigation (by Windstream against others), insurance claims, etc. as the main source of any cash they'll see. They concede in this filing below that all the regular assets are tied up by the first and second lien holders.
http://www.kccllc.net/windstream/document/1922312190412000000000017
They're likely to get stock in the new company, too.
There won’t be much company left when this is all said and done. It’s all going to be sold off.
OK, this is what I meant by my first, "Comporary" post:
All the solid "assets" -- stuff like equipment and money -- that Windstream owns are double-mortgaged already. The "first lien holders" are like the bank that holds your main mortgage. The "second lien holders" are like the people that hold a second mortgage on your home. If you can't make your house payments, that bank's still probably going to come out whole one way or another. The second mortgage holder - iffy but if your house goes to auction, they'll get at least something.
Then there are the unsecured creditors. They're basically all the non-financial types like vendors that Windstream owed money to. They're like your local power or water company .
I think Windstream also had some financial institutions that lent money "unsecured" (no lien/mortgage on anything -- like your credit card company) .
Unsecureds don't have anything like a pawned auto title or 2nd mortgage they can repossess. After your house, your car and your jet-ski get repo'd by regular lenders, there's not much left to pay other unsecureds with.
In Windstream's case, the 1st and 2nd lien holders got rights to repossess just about everything if they have to. They probably won't do that but they've got clout over the unsecureds -- the unsecureds are stuck with crumbs after the lien holders get paid.
So the unsecured are getting creative. "Off balance sheet money" = stuff you don't put on list of what you own and what you owe
"Litigation": sort of like the credit card company finding out you're suing Walmart because you say you slipped and fell in their store. That's great -- they want that money when you get it.
"Insurance claims" - MasterCard sees you're expecting an life insurance payoff from your Cousin Willie's death. They want that money, too.
But if the dividend of the late second quarter lien constitutes a progressive stock aggregation then the only way to aggressively turn around the margin point of safe-statute is to force an opaque filing of assets by law which has to be approved by the holder of the price points. Comporary or non-Comporary.