[101voodoo]

I understand the process but the idea of a Chapter X1 is to hold off the creditors until an attempt at a reorganization can be attempted. Part of this process includes a renegotiation of existing employment contracts. If it falls apart and liquidation is necessary then of course you are correct in that assets go to the creditors.

[Mr. Lucky]

You’re right, it’s just that the pre-bankruptcy owner isn’t the post bankruptcy owner.

[Loyal Buckeye]

I think what Mr. Lucky is suggesting is that ownership of the bankrupt entity, which is different than ownership of its assets, would pass to the creditors.

It would be interesting to see the lineup of the creditors of a bankrupt Boston Globe. Employees, trade creditors, probably The New York Times Company, and others would be the new owner group. My guess is The Times would lose control and, accordingly, would no longer have any interest of having any continuing involvement with The Globe.