On Fri, 19 Nov 2004 20:37:57 -0500, "Chris Hornberger"
wrote:


Ain't that just grand? "Yeah, Hi... we're strapped for cash. Mind if I file
for bankruptcy so I can reorganize? yeah? Great. Thanks... Oh, and by the
way... I wanna buy this other really huge retailer, too. Great. Thanks...
Take care now."

ugh.


The "we" who represented the company and took it into
Chapter 11 are not the "we" who are now running it. The
latter put money into it to take it over. Creditors had the
same option, if they could assemble the resources.
Actually, in this particular case most classes of creditors
didn't do as badlly as they often do in these situations.

There is another form of abuse that has been evolving over
bankruptcy proceedings. Say you build the furniture for a
Director's room for a company, get paid, say, $10K and two
months later the company declares bankruptcy. In many
cases now, the attorneys for the company will come after
you for the money, claiming that you should be included in
the list of creditors affected by the bankruptcy. In some
bankruptcies, a thousand or more people and companies
have been hit this way, and bankruptcy courts have
supported it.