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What stops their creditors taking the company? They don't have enough to pay them off.
by aembleton 6y ago
What stops their creditors taking the company? They don't have enough to pay them off.
- sgerenser 6y agoAn extra billion dollars from a stock sale might go a long way in paying off creditors.
- LatteLazy 6y agoWell first, what makes you so sure they don’t have more assets than liabilities? The filed for chapter 11 (restructuring) not chapter 7 (liquidation). And second, even if their liabilities exceed their (physical) assets, creditors are very reluctant to actually liquidate larger businesses. I don’t know exactly why but just looking historically, creditors tend to be much more willing to take a haircut and keep at least parts of the business operational than to demand their full pound of flesh...