2 ms·
Mechanistically, how would the LLC achieve bankruptcy?
by loeg 11mo ago
Mechanistically, how would the LLC achieve bankruptcy?
- jmalicki 11mo agoyou just... file for bankruptcy like any other person or corporation?
- loeg 11mo agoYeah but when you come to bankruptcy court with significantly more assets than debt, they aren't going to let you sell the business for pennies. I'm asking how you would believe this vehicle would go broke, which is the usual reason to go to bankruptcy.
- tjwebbnorfolk 11mo agoCorporate bankruptcy happens for a lot of reasons other than being "broke". Chapter 11 is a court-supervised way of restructuring your debt. This has a lot of utility in many situations other than not being able to pay.
- gruez 11mo agoIt'll go before a judge and creditors would be able to object, so if it's just a ploy to get rid of debt you can be certain it'd be contested.
- jmalicki 11mo agoMeta may have lots of assets, but the LLC may not. The ability to have one wholly owned LLC go bankrupt by itself is one of the main reasons shell corporations exist.
- wmf 11mo agoMeta would have to not renew the lease and somehow nullify the residual value guarantee. This would leave the LLC with no revenue at all. If the RVG works there should be no chance of bankruptcy.