3 ms·

Corporate bankruptcy is a scam. Any merger on auction should acquire existing debts, and execs should be a lien against wealth and future income.

• nradov 2y ago
  What a ridiculous proposal. Eliminating corporate bankruptcy and making employees personally liable for business debts would wreck the US economy. If debtors take a haircut then it's their own fault for lending in the first place; no one is forced to buy corporate bonds and vendors always have the option of requiring cash on delivery.
  • idontpost 2y ago
    > making employees personally liable for business debts would wreck the US economy Letting employees loot the company for their own profit isn't any better.
    • nradov 2y ago
      Shareholders and lenders already have the necessary legal tools to prevent employee looting, if they choose to use them.
      • idontpost 2y ago
        [dead]
• hylaride 2y ago
  Counter-argument, moneylenders shouldn't loan money to companies doing this. And secured lenders have their protections. Anyways, they knew the game. Bankruptcy auctions are essentially debtors recouping as many of their costs as possible before writing off the rest (further minimizing future taxes).