While looking for something else, I stumbled across this video. (Isn't that how most of us find our BEST stuff...when we're really not looking for it?)
This video is narrated by Paddy Hirsch, which I don't know who he is truthfully, but he has a neat sounding English accent (or something similar). That just nearly guarantees us folks here in the US will assume that he's smart.
Luckily, he seems to be right on the money.
In this video (under 7 minutes), he explains how the Debt-to-Equity swaps work:
Hirsch uses an airplane to describe the order of who gets paid first in the event of a bankruptcy and how debt-to-equity swaps work.
Below, I try to explain this concept and use an example to clarify it.
