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Why? How is market competition or the public served by forcing a company to go out of business instead of being acquired? The end result is the same (no competi
by cortesoft 3y ago
Why? How is market competition or the public served by forcing a company to go out of business instead of being acquired? The end result is the same (no competitor), but overall productivity is hurt. Why is that better for the public?
- ironmagma 3y agoGoing bankrupt doesn't necessarily mean going out of business. Also, as another commenter said, "letting a company fail really just means letting it sink far enough that some other acquirer will pick it up."
- throwaway2037 3y agoGreat point: In US bankruptcy law, "Chapter 7" is liquidation, and "Chapter 11" is re-org. Often, a well-managed Chapter 11 bankruptcy can allow a company to reduce debt burden and emerge as a stronger company, saving many jobs in the process. Chapter 11 bankruptcy is common in the US airline industry.
- bombcar 3y agoChapter 11 is basically finding a lower bidder - the lenders are willing to take ownership of the failing company.
- troupo 3y ago> How is market competition or the public served by forcing a company to go out of business instead of being acquired How is market competition or the public served by companies whose only strategy is to fail and be bought by the ever shrinking number of ultra rich mega corporations?