Bonkers thought: IF Corona is a short term problem (call it a year), is there any reason companies shouldn't declare BK if they run into grumpy creditors, to kick the can? If results/the market improve by the end of the process, interesting cases might be made about valuation?
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there are no rules in ch 11. strict waterfall of value should be followed but is not for a variety of reasons. one reason is certainly need for additional capital.
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also, bankruptcy judges do not want to get hands messy. and they are stupid and lazy. so they just kick the can and tell parties to negotiate. which is bizarre.
End of conversation
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