11-06-2013, 03:21 PM
(11-06-2013, 02:00 PM)freedom Wrote: for court-led bankruptcy, it is unlikely to be just fire sale of its assets to repay creditors, otherwise, why file for bankruptcy protection?
The whole bankruptcy protection is to ensure operation continues and no fire sale.
It is bad news for creditors as STX PO will not require to pay interest on its outstanding loans. at the same time gives STX PO the right to restructure itself such as to get rid of high rate charter contract and certain unwanted shipbuilding contract.
Hmm how does Court receivership works? Govt has all assets, creditors no recourse, does creditors still have a claim after its restructure? Or is it a case of " too big to fail" but smaller creditors can die and big creditors get some lifeline through taxpayers' money?