3 ms·
I don't see how this isn't illegal, or more pointedly, why everyone isn't doing it if it is legal? So you can just write off liabilities into a new company? W
by silisili 4y ago
I don't see how this isn't illegal, or more pointedly, why everyone isn't doing it if it is legal? So you can just write off liabilities into a new company? Why wouldn't every company do this every year?
- 0x457 4y agoWell, it is illegal to do anything ahead of bankruptcy that would have the effect of preferring shareholders to creditors. You can't just spin off your debt into a new company and declare bankruptcy as you wish, courts are involved, things must be approved. Clawback exists.