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That's what's implied by financial reporters every time. Most people don't understand restructuring and professionals call it bankruptcy too. Strictly speaking
by nymnsat 9y ago
That's what's implied by financial reporters every time. Most people don't understand restructuring and professionals call it bankruptcy too. Strictly speaking the company goes into creditor protection under CH11 to reorganize it's capital structure or sell it's assets/itself.
- nwatson 9y agoIs this purely a "screw the creditors" move a la Trump where company coerces negotiations via threat to fall apart? Except in Trump cases it seems he's usually avoided formal bankruptcy ?
- dragonwriter 9y ago> Most people don't understand restructuring and professionals call it bankruptcy too. It's called bankruptcy because it is, in fact, a form of bankruptcy established in the Bankruptcy Code under Congress’ Constitutional power to set uniform rules for bankruptcy. See, e.g., the info about chapter 11 reorganization bankruptcies from the US Courts website: http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy...
- nymnsat 9y agoProfessionals have their own colloquialisms wrt 'bankruptcy', which differs from a laypersons use of the word. Ch 7 bankruptcy is what most laypeople call 'bankruptcy', which usually applies to individuals (but can apply to corporations). I am aware that Ch 11 is under the US bankruptcy code. However, bankruptcy in this context (headlines), as used by distressed debt journalists, lawyers, bankers and investors, refers to CH 11 not Ch 7. They'd refer to Ch 7 as 'Ch 7 bankruptcy'. Ch 11 just goes by 'Ch 11' or simply 'bankruptcy'.