Current investors lose all value in Abuelo’s proposed bankruptcy plan but can purchase priority stock later

Current investors lose all value in Abuelo’s proposed bankruptcy plan but can purchase priority stock later

Abuelo’s filed a proposed reorganization plan in bankruptcy court putting new board leadership and ownership in place. If approved, it also wipes out the value previous owners had. The plan also: Restructures roughly $8 million of loans (all from the same bank) into a single 10-year note at 7 percent interest Pays back secured creditors (or gives them options for recovering their full value) Pays back only a portion to unsecured creditors Gives…