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As I understand from this "The Plain Bagel" video [0], they're not bankrupt. Instead, they're likely nearing the completion of their debt restructuring. [0] ht
by hebrox 3y ago
As I understand from this "The Plain Bagel" video [0], they're not bankrupt. Instead, they're likely nearing the completion of their debt restructuring.
[0] https://www.youtube.com/watch?v=c-n6RN8a2Zo https://www.youtube.com/watch?v=c-n6RN8a2Zo
- andreareina 3y agoThey're restructuring their debt because they're bankrupt.
- Sakos 3y agoThe problem is the term "bankruptcy". Colloquially people seem to think a company is just out of money. All you need to file for bankruptcy is to be unable to service debts at a specific time. It might even just be a transitory state.
- slv77 3y agoA company is insolvent when liabilities exceed assets. Companies can remain insolvent indefinitely unless they miss a payment at which point a creditor can force them into bankruptcy where a court oversees liquidation. Evergrande is insolvent and is now bankrupt. There is no reasonable scenario here where the company continues to operate as a growing concern.
- quickthrower2 3y agoTIL, more than one time of insolvency: https://en.wikipedia.org/wiki/Insolvency https://en.wikipedia.org/wiki/Insolvency