Convoy collapse: Read CEO's memo detailing shutdown of Seattle trucking startup

Re:Convoy collapse: Read CEO's memo detailing shutdown of Se... by jahewson on Thursday October 19, 2023 @05:03PM (#37948685)

I get your point but to free up cash for the employees he’d have to bail out all the other creditors first. Not a good precedent to set.

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Re:Convoy collapse: Read CEO's memo detailing shutdown of Se... by nilram on Thursday October 19, 2023 @07:46PM (#37950347)

Under US bankruptcy law, cash first goes to employees, then creditors (including contractors), then owners.

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Re:Convoy collapse: Read CEO's memo detailing shutdown of Se... by pests on Friday October 20, 2023 @02:27AM (#37952947)

Yep, that is how the law works. In this case cash is going to the creditors. Employees aren't owed anything, then the next in line are the creditors.

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