Bankruptcy for a Two Year Old

[RIOtoPilot]

Can somebody explain Chapter 11 Protection to a layman? Do all their debts become forfeit and they just continue to operate? Is there a statute of limitations on how long a company can operate? What happens to those owed money - finanacial institutions, Boeing, etc.?

 

[SiuDude]

Google "Debtor in Possession."

 

[B6Guy]

Also what about

Just how low can a company in BK pirce their product??? What is stopping a BK airline from offering $29.oo fares from east coast to west coast when their costs with a full plane are $129.00??

From someone with knowledge I'd like to read your version of : 'Bankruptcy for Dummies'

Thanks B6Guy [a BK dummy]

 

[lowecur]

Here's a synopsis of the process and who will be paid first.


http://www.grandforks.com/mld/grandforks/business/12652860.htm

 

[lowecur]

From someone with knowledge I'd like to read your version of : 'Bankruptcy for Dummies'

Thanks B6Guy [a BK dummy]

You will notice most Chapt 11 companies do not innitiate fare sales first. The judge and creditors will allow them to match certain fares by other carriers, but revenue stream must be based on prudent industry standards.

 

[xtwapilot]

Somehow i don't think $89 fare for a transcon is a prudent industry standard, it's an industry standard, but it's certainly not prudent.

 

[lowecur]

Somehow i don't think $89 fare for a transcon is a prudent industry standard, it's an industry standard, but it's certainly not prudent.

There's probably a wall right behind you. Turn around and start talking to it. Prudent is the standard for the times, and these are those times.

 

[CA1900]

I think Rita Rudner summed it up best:

"Do you know about Chapter 11? You don't pay your bills, and you don't go to jail. What's Chapter 12? Run like hell?"

Truer words were never spoken.

 

[Publishers]

There is a another provision that is not mentioned much--

they can go back and rescind payments made or deals made within the last 90 days. That was put in to prevent deals and payments being made in anticipation of BK.

The reason they can get new money is that this debt comes first before all the previous debt

 

[xtwapilot]

Your a real bright guy lowecur, you seem to have a serious selfesteem problem. I guess based on your definition of prudent, the sign of the times during the hitler era were quiet prudent as well eh? Just a little lesson for you wanna be management type, prudent has nothing to do with the sign of time, the prudent thing to do is irrespective of the time, it's the prudent thing during good or bad times. So according to you it's prudent to cut your on throat because everyone else is doing it? Like I said before, you must have a severe selfesteem problem to be such a crowd follower.