Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Alberta's Child

One of the details in the article suggests that the company incurred a lot of debt to acquire a major competitor. Closing down the business so quickly suggests to me that the company has a liquidation value of less than $0.


The assets do not necessarily go away. At a cheaper price that might still be profitable.

It is the third owner of a motel who finally makes a little money.


54 posted on 11/26/2022 9:04:34 AM PST by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
[ Post Reply | Private Reply | To 14 | View Replies ]


To: PeterPrinciple

The assets don’t go away, but they may be worthless to the current owner. If you have $10 million in assets, $50 million in debt, and no way to pay off the debt through your current operations, you may as well walk away because your creditors will be fighting for those assets and you will own none of them anyway.


59 posted on 11/26/2022 9:39:54 AM PST by Alberta's Child ("It's midnight in Manhattan. This is no time to get cute; it's a mad dog's promenade.")
[ Post Reply | Private Reply | To 54 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson