Posted on 12/19/2014 12:11:58 PM PST by C19fan
Yes but bankruptcy isn’t fast and assets can stay tied up in court for a long time. And probably if one company couldn’t survive getting that oil out at $50/b other companies won’t have better luck.
I understand, but remember the cost basis for the acquirer will not be the cost basis for the seller. It will be marked down to market (IOW, what it’s worth), whatever that is.
Of course if they’re smart they realize that the market is glutted and they shouldn’t actually do anything with the oil until a few more place have gone under and the price has gone up.
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