7 ms·

Can someone explain why any one given lender wouldn't just say "fuck you, pay me"? In the broad sense I understand - if paying would cause a going concern for

Can someone explain why any one given lender wouldn't just say "fuck you, pay me"? In the broad sense I understand - if paying would cause a going concern for the lendee, the le der would rather get something tether than nothing. But in this case, the article even said the wework has cash on hand and a credit line. Why wouldn't any one given lender try to cash out in full and run for the doors, and leave all the other lenders who renegotiated holding the bag? Simply get a legal order forcing wework to pay in full while they still have the ability to (even if it meant paying YOU in full would make it so they wouldn't be able to pay OTHERS later).

4death4 3y ago
Where does the lender get this magic “get paid in full” option? Obviously if the lender has that option, they would take it. But they don’t. Even if they got a court order demanding wework pay out, that claim would get lumped in with all the other claims. You can’t just magically skip the line.
- gameshot911 3y ago
  Only if they file for bankruptcy. I'm saying get paid in full via court order before they file for larger bankruptcy. If wework owes you $100M that you demand repayment on, and they owe $1B in total, they may not want to declare full bankruptcy just for your 10% of the total debt. In which case you can get a court order to be paid in full, since they was the terms of the original debt contract.
  - 4death4 3y ago
    If the debt is structured in such a way that the lender can demand payment in full at any time, then sure, that might work. But the vast majority of debt is not structured like that.
    - gameshot911 3y ago
      I meant more so get paid in full whatever you're owed at that point in time. But you're right, sure you may get full payment on the 1/20th of a debt you're owed today, but if that puts the rest of the repayments at risk I can see why you'd want to negotiate.
    - bryanlarsen 3y ago
      I've never seen loans of that size, but in my understanding a lot of debt is structured so that if a payment is missed the lender can call the entire amount.
- ballenf 3y ago
  And if you do the money gets clawed back in the bankruptcy that comes immediately after the company has handed over all their free cash.
oldtownroad 3y ago
You can’t just get a legal order forcing a borrower to pay. A lender is at the mercy of a borrower’s willingness to repay unless the lender is willing to accept pennies on the dollar by forcing the borrower into bankruptcy.
- Ajay-p 3y ago
  You can get a legal order garnishing wages to pay a debt.. https://www.dol.gov/agencies/whd/fact-sheets/30-cppa https://www.dol.gov/agencies/whd/fact-sheets/30-cppa
  - toomuchtodo 3y ago
    From a natural person, the mechanics for a corporation are different. Also, wage garnishment is heavily dependent on state law.
toomuchtodo 3y ago
> Can someone explain why any one given lender wouldn't just say "fuck you, pay me"? “Fuck you, sue me.” Which takes time.

4death4 3y ago

Where does the lender get this magic “get paid in full” option? Obviously if the lender has that option, they would take it. But they don’t. Even if they got a court order demanding wework pay out, that claim would get lumped in with all the other claims. You can’t just magically skip the line.

gameshot911 3y ago
Only if they file for bankruptcy. I'm saying get paid in full via court order before they file for larger bankruptcy. If wework owes you $100M that you demand repayment on, and they owe $1B in total, they may not want to declare full bankruptcy just for your 10% of the total debt. In which case you can get a court order to be paid in full, since they was the terms of the original debt contract.
- 4death4 3y ago
  If the debt is structured in such a way that the lender can demand payment in full at any time, then sure, that might work. But the vast majority of debt is not structured like that.
  - gameshot911 3y ago
    I meant more so get paid in full whatever you're owed at that point in time. But you're right, sure you may get full payment on the 1/20th of a debt you're owed today, but if that puts the rest of the repayments at risk I can see why you'd want to negotiate.
  - bryanlarsen 3y ago
    I've never seen loans of that size, but in my understanding a lot of debt is structured so that if a payment is missed the lender can call the entire amount.
ballenf 3y ago
And if you do the money gets clawed back in the bankruptcy that comes immediately after the company has handed over all their free cash.

oldtownroad 3y ago

You can’t just get a legal order forcing a borrower to pay. A lender is at the mercy of a borrower’s willingness to repay unless the lender is willing to accept pennies on the dollar by forcing the borrower into bankruptcy.

Ajay-p 3y ago
You can get a legal order garnishing wages to pay a debt.. https://www.dol.gov/agencies/whd/fact-sheets/30-cppa https://www.dol.gov/agencies/whd/fact-sheets/30-cppa
- toomuchtodo 3y ago
  From a natural person, the mechanics for a corporation are different. Also, wage garnishment is heavily dependent on state law.

toomuchtodo 3y ago

> Can someone explain why any one given lender wouldn't just say "fuck you, pay me"? “Fuck you, sue me.” Which takes time.