3 ms·
bankruptcy != liquidation Liquidation (shut it down, fire everyone, sell all the stuff) is one (rare) outcome of bankruptcy. The more common is some form of r
by lokar 7y ago
bankruptcy != liquidation
Liquidation (shut it down, fire everyone, sell all the stuff) is one (rare) outcome of bankruptcy. The more common is some form of reorganization, debt re-structuring, etc. The "middle path" you mention.
Bankruptcy is good. It generally prevents un-needed and chaotic liquidations.
- rmrfstar 7y agoThanks. I wanted to avoid getting into the weeds on Chapter 7 (liquidation) vs. Chapter 11 (reorganization). Both are so disruptive and costly that threatening to invoke them can be (and has been) used to force a public bailout. A good example is the case of California Edison and Dynergy from 2001. [1] https://www.latimes.com/archives/la-xpm-2001-jan-16-mn-12864-story.html https://www.latimes.com/archives/la-xpm-2001-jan-16-mn-12864...