15 ms·

What about the contractors that get regularly screwed over from this? "Sorry, I know we agreed to pay for your time and work, but we declared bankruptcy and pai

What about the contractors that get regularly screwed over from this? "Sorry, I know we agreed to pay for your time and work, but we declared bankruptcy and paid off most of the bank's debt and nothing is left for you small fry! Good luck sueing us with your non-existant legal team! I just got a bonus for fucking you over and saving the company the money!"

CamperBob2 8y ago
If the company goes away entirely, the contractors and suppliers are even more hosed. Example would be the US auto industry. Whether through bailouts or traditional bankruptcy proceedings, it was considered vital that the businesses themselves remain operational to keep their supply chains intact.
roel_v 8y ago
'Chapter 11' is not really bankruptcy. Well it is in the US legal sense, but it's not really in the common use sense of the word.
pault 8y ago
I worked for a small design agency that got stiffed on a six figure invoice this way. There was absolutely nothing they could do about it and the bankrupt founder didn't even bother apologizing. It almost killed a 10 person company that the studio head had spent a decade building up from a sole proprietorship.
- nradov 8y ago
  The design agency shouldn't have extended so much credit in the first place.
all_blue_chucks 8y ago
If you sign a contract you assume counterparty risk. Don't sign contracts with companies that have garbage credit ratings. Or if you do, get money up front.
- AngryData 8y ago
  And how is some small contractor suppose to properly vet a business worth 100 million or more? Why would they ever assume they wouldn't or couldn't pay for their services? Why does the contractors get shafted over everybody else instead of getting an equal percentage of their owed debt payment like everyone else?
  - all_blue_chucks 8y ago
    > And how is some small contractor suppose to properly vet a business Ask for their credit rating. > Why does the contractors get shafted over everybody else Because that's how the contract is written. Don't like it? Get paid up front in senior security notes.

CamperBob2 8y ago

If the company goes away entirely, the contractors and suppliers are even more hosed. Example would be the US auto industry. Whether through bailouts or traditional bankruptcy proceedings, it was considered vital that the businesses themselves remain operational to keep their supply chains intact.

roel_v 8y ago

'Chapter 11' is not really bankruptcy. Well it is in the US legal sense, but it's not really in the common use sense of the word.

pault 8y ago

I worked for a small design agency that got stiffed on a six figure invoice this way. There was absolutely nothing they could do about it and the bankrupt founder didn't even bother apologizing. It almost killed a 10 person company that the studio head had spent a decade building up from a sole proprietorship.

nradov 8y ago
The design agency shouldn't have extended so much credit in the first place.

all_blue_chucks 8y ago

If you sign a contract you assume counterparty risk. Don't sign contracts with companies that have garbage credit ratings. Or if you do, get money up front.

AngryData 8y ago
And how is some small contractor suppose to properly vet a business worth 100 million or more? Why would they ever assume they wouldn't or couldn't pay for their services? Why does the contractors get shafted over everybody else instead of getting an equal percentage of their owed debt payment like everyone else?
- all_blue_chucks 8y ago
  > And how is some small contractor suppose to properly vet a business Ask for their credit rating. > Why does the contractors get shafted over everybody else Because that's how the contract is written. Don't like it? Get paid up front in senior security notes.