Suggest bankruptcy! It is that simple.
> Suggest bankruptcy! It is that simple.
OK, it’s possible that I don’t understand bankruptcy in the US: I didn’t work on that side of the Firm. Correct me if I’m wrong, but wouldn’t the process be to seek Chapter 11 protection from creditors, as a first step?
(What’s that going to do to your supply lines? Creditors won’t want to trade much with someone who isn’t in a position to pay them)
Then, doesn’t the business get run by a receiver, who will decide whether to “trade thru” and continue doing business, or “liquidate” and wind up the company, depending upon what is best for the shareholders (the creditors being held off via the Chapter 11 protection)?
(As automotive ought to be a strategic industry, shouldn’t this decision be made in the best interest of the Nation, with the shareholders and creditors be dam’ned?)
I don’t see how this process has been of any great benefit to the airline industry: they’ve just staggered along for many years and it has been a long time since any of them did anything strategic, except trying to kill each other off by ridiculous price undercutting.
I think airline and automotive are two industries where the Free Market perhaps doesn’t produce the required outcome. What is good for shareholders may/may not be good for the Nation as a whole.
In New Zealand we have definitely seen that in the telecommunications and electricity markets, which were privatized about a decade ago. The result was an under-investment in infrastructure plus price gouging for what increasingly became shonky product and service, plus a bleeding of Value from onshore to large offshore investors — whose only interest is ever-increasing returns on investment.
Not a particularly brilliant way to operate strategic assets.