this post was submitted on 01 Nov 2023
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Any idea if this is a proper (shut down) bankruptcy, or a get cheaper leases bankruptcy?
It’s a “we paid our execs all our cash” bankruptcy
It's in the article:
And that's the restructuring one? Does that let them escape or decrease their leases?
(Not familiar with American bankruptcy laws(...or any bankruptcy laws))
Yup, 11 is the restructuring one. Very little will happen automatically, but they will try to renegotiate their leases. In a world where big companies are adjusting to WFH being a norm, though no longer the the norm, this has the feeling of pissing on a house fire. When their Chapter 11 restructuring fails, that's when they'll file for Chapter 7 (liquidation)
This is the restructuring one.
https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
Based on the debts and lack of revenue they have. My guess it will be chapter 7 (wind up and liquidation) and not 11 (debt restructure).
so you didn’t read the article