Re:Judge Refuses to Allow Sale of Infowars to The Onion
by adolph on Wednesday December 11, 2024 @12:39PM
(#42390400)
> The creditors already own the asset.
The parent comment, quoted above is misinformation.
Re:Judge Refuses to Allow Sale of Infowars to The Onion
by JumpCrisscross on Wednesday December 11, 2024 @01:01PM
(#42390689)
> The parent comment, quoted above is misinformation
What?
Re:Judge Refuses to Allow Sale of Infowars to The Onion
by jpk2f2 on Wednesday December 11, 2024 @02:42PM
(#42391928)
They quoted the relevant portion. The creditors do not own infowars already.
A court appointed trustee is liquidating it, the owner has not changed (and will not until it officially sells).
Re:Judge Refuses to Allow Sale of Infowars to The Onion
by HWR_14 on Thursday December 12, 2024 @11:52AM
(#42400833)
The Onion's bid is the one where the creditors are applying their debt. The competing offer is more cash.
The whole point of bankruptcy is that the creditors do not get to vote and the solution that makes the majority happy isn't the best one. In an ideal bankruptcy everyone recovers the same percentage of their debt.
The creditors already own the asset. The estate is selling, not Alex Jones.
If you asked every creditor which bid they preferred, which do you think they'd choose? The creditors forgoing their claims obviously prefer one. As for the rest, they'll choose the one that pays them more: The Onion's bid.
This isn't how bankruptcy works in practice, but it's a good shorthand for what the correct answer should be.