3 ms·
Going 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 en
by ironmagma 3y ago
Going 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.