Filing a Chapter 11 simply to protect your otherwise solvent company from having to file an appeal bond while pursuing an appeal from an adverse judgment will very likely be held to constitute an abuse of the bankruptcy system, which would result in the dismissal of Lionel's Chapter 11 filing and the assessment of terms against Lionel and its attorneys. Publicly admitting that that is exactly what you are doing is incredibly stupid.
I sure would like to be representing MTH right now.
actually no it is not.
the judgement would damage the company and thus they are entitled to use the laws.
The judgment is unsecured debt, it goes to the bottom of the creditor rankings.
Notice they filed after the Christmas Season gear up/stock up time.
We're one week away from the busiest shopping day of the year and I'm sure Lionel is ready to ship their goods.