News for hackers. Stuff that matters.

A comment on They paid $100k to ride on Xcor's space plane. Now they want their money back. Parent comment

Re:They paid $100k to ride on Xcor's space plane. Now they w... by EGreg on Sunday December 30, 2018 @10:41PM (#18792868)
What is the point of that, if the money invested is vastly more than what the owner can earn?

The USA having bankruptcy protections is what helps foster this level of risk and entrepreneurship here.

[ Parent | on HN ]
Re:They paid $100k to ride on Xcor's space plane. Now they w... by shakna on Sunday December 30, 2018 @11:16PM (#18792979)
It's not investments that need to get paid back - it's contracts, or rather the value of the contract.

In this case, Xcor would need to pay back the fees they said would go to escrow. Not any investor who took equity on the gamble it would be worth something.

[ Parent | on HN ]
Re:They paid $100k to ride on Xcor's space plane. Now they w... by toast0 on Monday December 31, 2018 @01:19AM (#18793355)
Where is Xcor supposed to get this money? They lost their revenue source, laid off all their employees, and any property they have is presumably not nearly enough to satisfy their debt. The business is almost certain to close pending the resolution of the bankruptcy.

Certainly, if people were promised that there was money in escrow and it wasn't, that sounds like fraud, but that doesn't mean those who perpetuated the fraud have the money either.

[ Parent | on HN ]