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If they can't reorg and continue operating, what would a bankruptcy filing accomplish? They're going to default on all their debts either way.
by prodigal_erik 10y ago
If they can't reorg and continue operating, what would a bankruptcy filing accomplish? They're going to default on all their debts either way.
- Animats 10y agoThere may be some assets to auction off, and creditors are entitled to a piece of that.
- nla 10y agoAll of the debt holders will get paid first, which means everyone else will get zero.
- eli 10y agoDon't unpaid wages get paid first?
- toomuchtodo 10y agoAs long as they're bonafide employees and not just independent contractors.
- pmorici 10y agoBankruptcy protects the filer from being sued by it's creditors or generally. Even if there are no assets to be distributed you might do it for that reason. It also may help to keep the officers and directors from being sued personally since walking away from a company and not settling it's affairs in an orderly fashion could be grounds to pierce the corporate veil in some cases.