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How does that work? Does Boeing pay a penalty if they don’t make progress?

• randunel 3y ago
  US law allows companies to split off a subsidiary with all the liabilities and the main company to continue to function with all the assets just like before https://www.ltltalccommittee.org/ https://www.ltltalccommittee.org/ Boeing wouldn't need to pay anything.
  • radicaldreamer 3y ago
    They would never get another space contract again if they did that, but they can see this will be a larger market in 30 years, so they'll lick their wounds and continue on commercial space projects.
    • nordsieck 3y ago
      > They would never get another space contract again if they did that People say that, but I don't think it's true. Boeing pulled out of the Phantom Express project seemingly unscathed. https://www.space.com/boeing-withdraws-darpa-military-space-plane.html https://www.space.com/boeing-withdraws-darpa-military-space-...
      • twiddling 3y ago
        Depends on how good their lobbyists are.
        • ceejayoz 3y ago
          They're also vastly different projects. Phantom Express was very much experimental; Starliner wasn't supposed to be. Part of the selling point for Boeing was "this is mundane stuff we already know how to do".
  • humanistbot 3y ago
    You cite LTL / J&J like they got away with it. It's currently being litigated in multiple courts, it could go either way: https://money.usnews.com/investing/news/articles/2023-06-27/j-js-8-9-billion-talc-settlement-faces-us-bankruptcy-test https://money.usnews.com/investing/news/articles/2023-06-27/...
  • HDThoreaun 3y ago
    No, that is not how bankruptcy court works. The subsidiary needs to have enough assets to pay the creditors, up to the entire value of the company.