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The point of Chapter 11 is the company continues operating. To use a transportation example, all three of the largest airlines in the US went through Chapter 11
by ralph84 7y ago
The point of Chapter 11 is the company continues operating. To use a transportation example, all three of the largest airlines in the US went through Chapter 11 and never stopped flying during the process.
- moorhosj 7y agoYes, and all of those airlines have generated profits at some point, proving at least some viability. Uber and Lyft have yet to prove that. Also, Chapter 11 allows companies to reorganize their debt. Debt was the main problem that airlines faced (pensions, etc.), not the problem Uber and Lyft face.