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Bankruptcy doesn't mean they run out of money. Its protection from creditors on the expectation that a current or perceived liability will impair them, and the
by yieldcrv 2y ago
Bankruptcy doesn't mean they run out of money. Its protection from creditors on the expectation that a current or perceived liability will impair them, and the protection thwarts it.
But yes 99% correlated to having no ability to repay.
Its possible they expect a countersuit to win. Or they borrowed to much to pay lawyers.
- donavanm 2y agoThe proximate cause seems to be a $100M claim from WB against VREG regarding additional finance costs for matrix revolutions circa 2021. VREGs counter(?) suit was recently kicked back and told to go to arbitration. VREG also claims to have spent $19M pursuing their legal claims/response so far. My read is legal costs + no productions in the pipeline + no recent profitable activity + a likely ~$100M arbitration result is exactly whats led to bankruptcy.