Schwanker
Well-known member
- Joined
- Dec 17, 2001
- Posts
- 486
MsFan said:I don't mean this as flame-bait, but in all honesty, why wouldn't NWA take their shot at Chpt 11?
I think the only incentive they have to stay out of BK is the current stock/stock holders. Obviously, they'd lose huge in BK. It is managements job to reward the stockholders. I do agree-- if NWA does go the BK route, it will make them a stronger company on the other end. The question is, who does management work for? What is their goal? Provide the stockholders their greatest return on investment (minimize their loss) or be the strongest competitor at all costs (especially costs to the stockholders). In a BK restructuring, the current stock would likely be rendered worthless. By the way, even after dumping large positions recently in NWA--the BOD/Management still have a large stake in NWA stock.
Schwanker