On Tuesday, May 4, 2021 at 12:49:58 PM UTC-4, Ralph Mowery wrote:
In article , "frank says...

I especially liked the part where the judge asked the NRA to explain an
obvious conflict. The NRA wants to declare bankruptcy, but at the same time
they apparently sent a newsletter to their members in which they claimed to
be in the best financial shape ever. One of these things is not like the
other.


I guess neither of you understand how big business works.


Big business is set up to screw over the little people than mostly built
the business, or the stock holders.

The company I worked for was started in the local area around 1965 with
many good benefits and mainly a very good retirement. Around 1990 to
2010 it was sold several times , each time the benefits and retirement
were reduced. As far as the local workers nothing changed but a new
plant manager. By selling the company the eairly retirement benefits
were sort of null and void and the new company could dictate the new
benefits. It cost me and others around $ 1000 to $ 1500 a month in
retirement pension.

There are companies like a power company in California that about 10
years ago declared bankruptcy. The power never quit flowing,but the
stock holders were left without any stock.

Didn't GM sort of do the same thing ?

It's not unusual for companies to go bankrupt, for the stockholders to be
wiped out and for the company to be able to continue in business.
Stockholders are last on the list of those with any claim. In the case of GM,
other creditors and bondholders were ahead of GM. GM didn't have the
means to pay the bondholders, they wound up taking equity positions in
lieu of some of their bond claims as part of the bankruptcy negotiations.
When that happens, stockholders are
typically left with nothing. I suspect similar happened with the power
company. And it's not like a meteor struck GM one day, the stockholders
had plenty of time to get out during the long ride down. I would bet a
majority of stockholders at the end had taken those positions only in the
last months, betting that GM would not go bankrupt.

NRA is totally different. Starting with that AFAIK, they have not actually
gone bankrupt, just started the process. And they are not upside down,
they are doing it on the claim that they need that protection because of
the pending lawsuits from NY state. I don't know if anything like that has
ever been used successfully as a valid reason for bankruptcy. Seems
there is a good chance it will not be allowed.