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Unfortunately the bankruptcy process is extremely slow and costly. A lot of built-up value like institutional knowledge is destroyed. Bailing-in creditors and

Unfortunately the bankruptcy process is extremely slow and costly. A lot of built-up value like institutional knowledge is destroyed. Bailing-in creditors and diluting shareholders is fast and cheap by comparison. This is particularly true when the business is likely to continue operations similar to those in place at the time of insolvency. Bankruptcy works for Theranos or Pets.com, but not so much for airlines in 2020.

lordnacho 7y ago
> Bailing-in creditors and diluting shareholders is fast and cheap by comparison. I agree, whether the planes go through bankruptcy to a new player or the old ownership is radically changed, it allows to things to take a different course. With big dilution you can imagine the new owner essentially having bought the business before bankruptcy.