4 ms·
Who aren't parties to the bankruptcy, so who cares? The public benefits from increased competition.
by rhino369 8y ago
Who aren't parties to the bankruptcy, so who cares? The public benefits from increased competition.
- fauigerzigerk 8y agoI'm not against Chapter 11, but whether or not the public benefits depends on the specifics of the case. Sometimes unproductive companies are kept in business for far too long because there is political pressure. In the long run, it's not good for anyone if workers remain in unproductive jobs instead of moving on. It depresses salaries, erodes skills and saddles the financial system with debt of questionable quality. But Chapter 11 is certainly not a prerequisite for that. I think most zombie companies that are being kept alive never enter anything like Chapter 11. So I think Chapter 11 is good and necessary to avoid the sudden death of companies worth restructuring.