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Semi Related. How does a Bankruptcy work? Does a person who invested 44B get away with minimal consequences if he brings the company down, files for bankruptcy

• paxys 4y ago
  Far from having consequences, chapter 11 bankruptcy is actually a very powerful and advantageous financial tool in cases like this. Elon can likely wipe away the $13B+ of debt, get rid of all employee stock obligations, and continue to run the company himself under the temporary observation of a bankruptcy court. Chapter 11 filings are a very common outcome of leveraged buyouts like this one.
  • zzleeper 4y ago
    Wait what? Don't creditors get control of the company? Specially if the firm went down b/c of the actions of the current mgmt?
    • paxys 4y ago
      No, a company uses chapter 11 bankruptcy specifically to restructure debt and continue operating under the current management.