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Creditors must keep an eye on Newhall Land

Posted: July 9, 2008 1:44 a.m.
Updated: September 9, 2008 5:02 a.m.
Since the debtor is still in possession, the debtor, Newhall Land will still be paying the salaries of its executive officers, while those to whom they owe substantial debts must bite the bullet.

I just hope that in this case the Creditors Committee is active and investigates just how the $35,000,000.00 requested will be spent. The little guys who trusted them are out of luck for sure, but the people who were in charge will not feel much pain, if any.

The risk that suppliers face who continue to supply services to any debtor in possession is substantial. How can any company adjust their bad debt to accommodate this type of loss? Tighten up credit departments. Get every kind of security available. Accommodating your sales departments could be jeopardizing your entire company.

Yes, we all want Newhall Land to survive, but remember that the people who put the company into Chapter 11 are the same ones who are running it today, and being paid for their services. It is up to you folks on the Creditors Committee. If you don't become involved, don't be surprised at your payout.


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