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GreatGazoo

(4,521 posts)

2. they aren't "walking away" from debts

Reply to Atman (Reply #1)

Tue Jun 16, 2015, 06:06 AM

Jun 2015

$500 mil owed and $500 mil in assets = net zero. Chapter 11 is re-organization -- NOT debts wiped away. The goal is to get creditors paid.

Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business's earnings.

https://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code

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Gun Maker Colt Files For Chapter 11 Bankruptcy [View all] liberal N proud Jun 2015 OP

$500 million...meh, just walk away. Atman Jun 2015 #1

they aren't "walking away" from debts GreatGazoo Jun 2015 #2