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URL:  https://boards.fool.com/as-if-bankruptcy-courts-didnt-do-that-kind-of-30267283.aspx

Subject:  Re: Islamic Protests Date:  9/17/2012  3:10 PM
Author:  Goofyhoofy Number:  45475 of 128771

As if Bankruptcy Courts didn't do that kind of thing EVERY DAY!

Wow, you continue to demonstrate your rabid ignorance. There is Chapter 11 - which is "reorganization." There is also Chapter 7, which is "liquidation." If it's so easy to keep going, why do you suppose any business ever goes through Chapter 7 liquidation?

Another fantasy of the left.
Offer a cheap deal and institutions with cash or credit would be in their buying up cheap assets.


Bankruptcy proceedings take months, occasionally years, unless you - and all your creditors - agree overnight to liquidation. Otherwise you may have inventory walk out the door, certain favored vendors paid off while others get nothing, and so on. In order to proceed rationally, outside auditors, courts, and industry experts get involved to decide who gets what and how the business is to proceed, and whether that is a viable plan or not.

If you are going to "keep going" after the bankruptcy (Chapter 11, rather than 7) you need cash to pay the bills in the intervening time. Workers do not come to work without a paycheck, vendors will not advance inventory without payment, landlords must be paid, the electric company wants its check. Indeed, all of these creditors become more aggressive about payment, not less.

As for your fantasy that "it's a fantasy of the left", I'm sorry, but I was there. You were in your basement playing with gas pipes or something.

My wife was SVP of a business employing 1500 people, in business for 15 years, doing over $300 million a year in sales. Never had any debt, except once, for a short term loan to build a new facility since they had terribly outgrown their original one. Unfortunately that loan was taken out in early 2007, and the market collapsed and people stopped buying in late 2007 and 2008.

The company was on the verge of bankruptcy, and THERE WAS NO BRIDGE MONEY TO BE HAD AT ANY PRICE. A new CEO, one with 30 years of bankruptcy experience was brought in, and he spent the next three months flying all over the world looking for enough to keep the business operating. Nobody wanted to play. Everybody was so afraid everything was collapsing that they all sat on their money.

With days to spare before liquidation, he found some Japanese investors who took major equity portions in return for a few months' operating expenses. The company managed to get its head above water, laid off 40% of the workforce, stiffed vendors who were owed, fell behind on tax payments, and did some other bad stuff - but survived.

Nobody, nowhere, wanted to lend them the paltry sum they needed, and somehow you think there was some giant pot of money somewhere that would keep a business as vast as General Motors and Chrysler going for months while things got sorted out.

It's a shame when such desperate ignorance is rewarded by even wasting the electrons for you to write it. You do not know what you are talking about. You are spouting Right Wing fantasies, cobbled together from bits and shards of things somebody else said somewhere, and you simply don't have the slightest idea what you are saying.

Period.

General Motors would have been in liquidation, hundreds of thousands would have been unemployed instantly, with a million or more unemployed shortly thereafter if anyone had listened to your sage advice. Thank goodness nobody paid attention to you.
 

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