Re:Why Thomas Cook Collapsed
by chrisseaton on Thursday September 26, 2019 @06:07PM
(#21086101)
If you announced that you were going to go bankrupt in the future, your creditors and investors would bail, making you immediately bankrupt. There’s no way to ‘wind down’.
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What do you think happens in the US? It sounds like you're saying that Chapter 11 is not a conceivable way to do bankruptcy.
Re:Why Thomas Cook Collapsed
by chrisseaton on Thursday September 26, 2019 @07:09PM
(#21086607)
But we don't have Chapter-11-style provisions in the UK. If we did, you could effectively wind down or restructure a company. But we don't. So you can't.
In the UK if you know that are you insolvent (and knowing that you are about to be insolvent is effectively the same thing as knowing that you are insolvent) then it's illegal to trade. Using your last bit of money to do something like fly people home is illegal - it would be defrauding other creditors who have higher priority to be paid off.
Sure, the tone of what I was responding to was that it was impossible to do things differently. Kind of like an American explaining why universal healthcare is impossible.
Having bankruptcy at all is an attempt at making a situation full of inherent conflict more orderly and less disruptive, so it isn't obvious why one must execute its provisions in a disruptive manner.