aislehopper
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PITbull said:
Agreed.
Delta And Nwa
- Thread starter nostradamus
- Start date
Agreed.
WorldTraveler
Corn Field
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Just a reminder that a company has the opportunity to create its own plan of reorganization and only if they fail, it is given over to the creditors. Therefore, an unsolicited merger is not likely. That's just the way bankruptcy works.
Bankruptcy is a process of maximizing the value to the creditors and that is rarely done by pulling out just a few assets - remember DL and NW are largely companies w/ significant assets and debts beyond their most lucrative assets. Also, shortcircuiting the bankruptcy process pulls value away from the creditors so it is very unlikely that they will support unsolicited bids for assets. It is also very unlikely that the creditors would be willing to allow bids for assets such as in TWA's final bankruptcy until it is shown that the company cannot successfully reorganize. Successful reorganizing is by far the best way to maximize creditor value.
Bankruptcy is a process of maximizing the value to the creditors and that is rarely done by pulling out just a few assets - remember DL and NW are largely companies w/ significant assets and debts beyond their most lucrative assets. Also, shortcircuiting the bankruptcy process pulls value away from the creditors so it is very unlikely that they will support unsolicited bids for assets. It is also very unlikely that the creditors would be willing to allow bids for assets such as in TWA's final bankruptcy until it is shown that the company cannot successfully reorganize. Successful reorganizing is by far the best way to maximize creditor value.
