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Re: But wait, there's more
Quote:
Originally Posted by Adder
They aren't going to be employed after the liquidation either.
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Why is it assumed these are all liquidations? Ch. 11 typically involves a reorg plan. Investors and unsecured creditors are hammered. Necessary employees are retained.
And in this crisis, Ch. 11 reorg is the preferred method for most small to mid sized businesses. Most of these companies are dying because of a short term extreme lack of revenue rendering them unable to meet fixed costs. In a reorg, you buy them time for revenue to return so they can meet all those costs. No need for liquidation in most small businesses. Liquidation is needed for the larger businesses that are larded up with debt (a lot of them owned by PE, which loves piling them full of debt to extract bullshit "fees") and didn't really have any viable business (zombies).
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Last edited by sebastian_dangerfield; 05-06-2020 at 12:59 PM..
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