National Rifle Association files for bankruptcy

Re:National Rifle Association files for bankruptcy by chrisseaton on Saturday January 16, 2021 @02:36PM (#25804772)

I don't get bankruptcy in the US. Companies and organisations go bankrupt but just seem to keep on going as normal? Bankrupt airlines flying people as normal for example? The NRA being bankrupt but still going? What's up with that?

In the UK I think if you're bankrupt (insolvent) then that's it you're done, you're not trading anymore, and they will call in a third-party company to wrap you up and sell all your stuff and you're not likely getting any money out of it as an owner or shareholder.

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Re:National Rifle Association files for bankruptcy by atombender on Saturday January 16, 2021 @03:34PM (#25805250)

Read about federal bankruptcy protection, aka Chapter 11 [1]. Total liquidation would be Chapter 7.

Applying for this kind protection allows a company to continue doing business while halting creditor claims. However, they have to undergo a formal process where they have to construct a restructuring plan to be reviewed and approved by the courts.

The UK this process is apparently called administration [2], and there are several mechanisms for restructuring and dealing with creditors.

[1] https://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_S...

[2] https://en.wikipedia.org/wiki/Administration_in_United_Kingd...

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Re:National Rifle Association files for bankruptcy by conception on Saturday January 16, 2021 @02:41PM (#25804815)

There are two types - restructuring where they halt debt payments and get time to fix the business and going out of business bankruptcy. The first is a farce for whomever to exact all the value that’s left and almost always what companies do today.

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