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I believe what you’re missing here is a “Chapter 11 Bankruptcy”, as opposed to a “Chapter 7 Bankruptcy”. Chapter 11 means the business keeps running, but the o
by peteretep 6y ago
I believe what you’re missing here is a “Chapter 11 Bankruptcy”, as opposed to a “Chapter 7 Bankruptcy”.
Chapter 11 means the business keeps running, but the owners lose their money, Chapter 7 is what most of the world considers to be a bankruptcy / going bust / liquidation. Uncle Sam probably doesn’t care if Delta does a Chapter 11, as long as the planes keep flying.
- kube-system 6y agoI guarantee that Uncle Sam doesn't care if Delta files chapter 11. https://money.cnn.com/2005/09/14/news/fortune500/delta/ https://money.cnn.com/2005/09/14/news/fortune500/delta/
- kart23 6y agoholy shit. And there was a guy here who bought delta bonds, saying he would make an easy 7% by the end of the year.
- chii 6y agosometimes bond holders are given the option to convert the debt into equity (at probably pennies to the dollar, which is a steep discount and therefore, a good deal) - that's what restructuring means.