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strredwolfYou know, the more I think about it, the more I belive alot of these bankruptcies can be avoided if we insitute some new, suttle laws.
First, all companies filing chapter 11 get their books audited by the court. No ifs, ands, or buts. If the audit is clean, it's clean. If the audit turns up something noone knew about, then we know the true cause of the bankruptcy.
Second, if the company filing for chapter 11 is filing due to executives plundering the company, the company will have as much of those assets returned. For example: Adephia's former CEO build a golf course using Adelpha company money as a loan that was "auto-forgiven". If this measure was enacted, Adephia as a company would now have a golf course in it's assets, to which it can sell off and maybe even make a profit. Property bought by the greedy exec would be returned to the company for the company to manage or sell as seen fit.
Logical, no? Too bad I can't make the laws in RL.
First, all companies filing chapter 11 get their books audited by the court. No ifs, ands, or buts. If the audit is clean, it's clean. If the audit turns up something noone knew about, then we know the true cause of the bankruptcy.
Second, if the company filing for chapter 11 is filing due to executives plundering the company, the company will have as much of those assets returned. For example: Adephia's former CEO build a golf course using Adelpha company money as a loan that was "auto-forgiven". If this measure was enacted, Adephia as a company would now have a golf course in it's assets, to which it can sell off and maybe even make a profit. Property bought by the greedy exec would be returned to the company for the company to manage or sell as seen fit.
Logical, no? Too bad I can't make the laws in RL.
