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Paid in full with what money? There isn't any left. If anything, it is probably in the interest of the real estate owners to free up the building so that it can
by WJW 3y ago
Paid in full with what money? There isn't any left. If anything, it is probably in the interest of the real estate owners to free up the building so that it can be leased out to someone else who can actually pay the rent.
At the same time there is often some value (though not necessarily actual money) left in the brand name and some other intangible things like business processes. Outright killing the company until the debts get paid (which they won't) is just needlessly destructive and leaves money on the table that could have been at least partially recouped. The whole point of chapter 11 bankruptcy is to try and recapture some of that value to try and pay off the debts a little bit more than would be possible otherwise.
- Ekaros 3y agoWouldn't maximum payment come from selling everything they have? At least for the debt holders who own unpaid contracts. Sell the furniture and the brand. Distribute the money. Everyone gets their fair share.
- pjc50 3y agoThe liquidation value is usually way less than the "going concern" value. Mind you, there's also the "flatpack" version where the company technically disappears but all its assets are bought by a different company that just happens to be run by the same people. Ultimately there's nothing hugely bad about the lessors getting stiffed in the bankruptcy - at least they still have the asset! Suppliers often end up worse off if they've shipped actual goods but not had their invoice paid. This is why landlords do credit checks and ask for deposits.