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WeWork is still running too… chapter 11 is a bankruptcy where you restructure debt and keep the lights on, not where you shut down.

by zwily 3y ago

filoleg 3y ago
This is just plain wrong. Guess which other companies filed for chapter 11 bankruptcy? Sears, BedBath&Beyond, and Circuit City. I don’t see them coming back at all. Not saying that there is no possible comeback from chapter 11, there is. But seeing a chapter 11 filing and assuming the company will get out of it just fine is a bit preposterous. Most of the time, the whole point of “reorganization” under chapter 11 is to keep generating whatever cash flow they can in the process, to make sure the creditors recoup as much of their investment before the (most likely inevitable) shutdown and the operations are wound down as gently as possible.
- Reason077 3y ago
  > "Guess which other companies filed for chapter 11 bankruptcy? Sears, BedBath&Beyond, and Circuit City. I don’t see them coming back at all" General Motors, American Airlines, Marvel Entertainment, Hertz ...
  - filoleg 3y ago
    And yet, chances don’t seem that good. The highest possible estimate for survival rate from chapter 11 bankruptcy that i managed to find was quoting about 25%[0]. 0. https://www.forbes.com/2008/09/25/chapter-11-bankruptcy-ent-law-cx_rb_0925bovarnickchap11.html https://www.forbes.com/2008/09/25/chapter-11-bankruptcy-ent-...
- zwily 3y ago
  It’s not “plain wrong”. Sure, most chapter 11 companies don’t make it - but by filing chapter 11 instead of chapter 7, it means they’re still operating and trying to make it. Chapter 7 is “turn out the lights and liquidate”.
mianos 3y ago
Yes, you are correct. Maybe I should have said there is more certainty about the future of Regus. I am not even sure of that. I do agree, a lot of the media is saying this is a tactical move to re-negotiate a lot of expensive leases and they plan to get out of chapter 11 when they do.

WeWork is still running too… chapter 11 is a bankruptcy where you restructure debt and keep the lights on, not where you shut down.

by zwily 3y ago

WeWork is still running too… chapter 11 is a bankruptcy where you restructure debt and keep the lights on, not where you shut down.

filoleg 3y ago

This is just plain wrong. Guess which other companies filed for chapter 11 bankruptcy? Sears, BedBath&Beyond, and Circuit City. I don’t see them coming back at all. Not saying that there is no possible comeback from chapter 11, there is. But seeing a chapter 11 filing and assuming the company will get out of it just fine is a bit preposterous. Most of the time, the whole point of “reorganization” under chapter 11 is to keep generating whatever cash flow they can in the process, to make sure the creditors recoup as much of their investment before the (most likely inevitable) shutdown and the operations are wound down as gently as possible.

Reason077 3y ago
> "Guess which other companies filed for chapter 11 bankruptcy? Sears, BedBath&Beyond, and Circuit City. I don’t see them coming back at all" General Motors, American Airlines, Marvel Entertainment, Hertz ...
- filoleg 3y ago
  And yet, chances don’t seem that good. The highest possible estimate for survival rate from chapter 11 bankruptcy that i managed to find was quoting about 25%[0]. 0. https://www.forbes.com/2008/09/25/chapter-11-bankruptcy-ent-law-cx_rb_0925bovarnickchap11.html https://www.forbes.com/2008/09/25/chapter-11-bankruptcy-ent-...
zwily 3y ago
It’s not “plain wrong”. Sure, most chapter 11 companies don’t make it - but by filing chapter 11 instead of chapter 7, it means they’re still operating and trying to make it. Chapter 7 is “turn out the lights and liquidate”.

mianos 3y ago

Yes, you are correct. Maybe I should have said there is more certainty about the future of Regus. I am not even sure of that. I do agree, a lot of the media is saying this is a tactical move to re-negotiate a lot of expensive leases and they plan to get out of chapter 11 when they do.