Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall
by Reason077 on Tuesday November 07, 2023 @11:05AM
(#38178476)
> "Guess which other companies filed for chapter 11 bankruptcy? Sears, BedBath&Beyond, and Circuit City. I don’t see them coming back at all"
General Motors, American Airlines, Marvel Entertainment, Hertz ...
Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall
by filoleg on Tuesday November 07, 2023 @05:04PM
(#38183607)
And yet, chances don’t seem that good. The highest possible estimate for survival rate from chapter 11 bankruptcy that i managed to find was quoting about 25%[0].
0. https://www.forbes.com/2008/09/25/chapter-11-bankruptcy-ent-...
Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall
by zwily on Wednesday November 08, 2023 @09:17AM
(#38190579)
It’s not “plain wrong”. Sure, most chapter 11 companies don’t make it - but by filing chapter 11 instead of chapter 7, it means they’re still operating and trying to make it. Chapter 7 is “turn out the lights and liquidate”.
Guess which other companies filed for chapter 11 bankruptcy? Sears, BedBath&Beyond, and Circuit City. I don’t see them coming back at all.
Not saying that there is no possible comeback from chapter 11, there is. But seeing a chapter 11 filing and assuming the company will get out of it just fine is a bit preposterous.
Most of the time, the whole point of “reorganization” under chapter 11 is to keep generating whatever cash flow they can in the process, to make sure the creditors recoup as much of their investment before the (most likely inevitable) shutdown and the operations are wound down as gently as possible.