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The article talks about how few companies have filed for bankruptcy so far. I have heard it predicted that companies will wait until businesses are open so they
by gpsx 6y ago
The article talks about how few companies have filed for bankruptcy so far. I have heard it predicted that companies will wait until businesses are open so they can liquidate. And, at the same time there would be a race then because companies would want to be at the start of the liquidation wave.
When I heard this they didn't talk about the difficulty in overwhelming the courts, which is another interesting factor.
- rdtwo 6y agoThere is probably some sort of consideration about If you want to get it done quick or drag it out. If you think you can restructure and bounce back you want the quick option if you think your want to drag it out you wait till the last possible moment. Really though last possible moment is best because it maximizes pain on the creditor and therefore increases settlement value