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Re:Texas electric firm files for bankruptcy citing $1.8B in ... by 8note on Monday March 01, 2021 @12:20PM (#26305249)
I'm not clear why shareholders aren't on the hook for these cases, on a per share basis. The individual owners can declare bankruptcy instead of the business
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by cardiffspaceman on Monday March 01, 2021 @04:24PM (#26308613)
There are lots of ways to structure a firm. Some of them involve the sort of partnership that would effectively make the debts of the firm into shared debts of the partners. But others the debts of the firm are just that, and the only thing a debt of the firm can do to a shareholder is make the shareholder's share worthless. In the first case the partner might have to sell their Berkshire Hathaway shares to help the firm pay a debt. In the second case the shareholder doesn't have to sell off the BRK-B, or their house.