Found this in the SAS press release regarding the bankruptcy: Source
Why are they filing in U.S. Court?
Found this in the SAS press release regarding the bankruptcy:
Chapter 11 is a well-established and flexible legal framework for restructuring businesses with operations in multiple jurisdictions, and has been used by a number of large international airlines to restructure.
Chapter 11 isn't really declaring bankruptcy at all though, is it? Chapter 11 generally provides for reorganization with protection from creditors to keep a business alive to avoid bankruptcy, no?...
Chapter 11 isn't really declaring bankruptcy at all though, is it?
Chapter 11 generally provides for reorganization with protection from creditors to keep a business alive to avoid bankruptcy, no? It's basically a way to get a court to accept that you don't pay creditors as previously agreed.
This was surely on the cards before the pilots' strike, but has probably been moved forward as a result of it. That's my guess and I wouldn't be surprised if someone high up in SAS would confirm it, or have already.
My basic understanding (which will be wrong in some details) is that it usually means that stockholders lose everything and creditors own the business now, according to a complicated settlement...
My basic understanding (which will be wrong in some details) is that it usually means that stockholders lose everything and creditors own the business now, according to a complicated settlement decided by a judge.
The idea is that the remaining business is worth something, so if it keeps running (perhaps in a reduced but more profitable way) then the creditors can get some of their money back by selling what's left of it, perhaps to new shareholders.
Chapter 7 is for when the remaining business isn't worth operating.
From a labor relations point of view, management is saying "we give up. You'll have to negotiate with new management." Which I guess is the judge, for now? What do labor negotiations look like under bankruptcy protection?
It may be common here, but as an American, it is really weird, seeing national govts (Denmark, Sweden, Norway) talking about buying/selling, increasing/decreasing their holdings in SAS, like...
It may be common here, but as an American, it is really weird, seeing national govts (Denmark, Sweden, Norway) talking about buying/selling, increasing/decreasing their holdings in SAS, like regular shareholders.
Why are they filing in U.S. Court?
Unrelated, FTA:
Read, we don't want to pay reasonable wages?
Found this in the SAS press release regarding the bankruptcy:
Source
Chapter 11 isn't really declaring bankruptcy at all though, is it?
Chapter 11 generally provides for reorganization with protection from creditors to keep a business alive to avoid bankruptcy, no? It's basically a way to get a court to accept that you don't pay creditors as previously agreed.
This was surely on the cards before the pilots' strike, but has probably been moved forward as a result of it. That's my guess and I wouldn't be surprised if someone high up in SAS would confirm it, or have already.
It is, but it isn’t complete liquidation (that’s chapter 7).
The original article titles captures the distinction well ... they didn't declare bankruptcy, but rather, filed for bankruptcy protection.
My basic understanding (which will be wrong in some details) is that it usually means that stockholders lose everything and creditors own the business now, according to a complicated settlement decided by a judge.
The idea is that the remaining business is worth something, so if it keeps running (perhaps in a reduced but more profitable way) then the creditors can get some of their money back by selling what's left of it, perhaps to new shareholders.
Chapter 7 is for when the remaining business isn't worth operating.
From a labor relations point of view, management is saying "we give up. You'll have to negotiate with new management." Which I guess is the judge, for now? What do labor negotiations look like under bankruptcy protection?
Holy shit. I don't even know what else to say.
It may be common here, but as an American, it is really weird, seeing national govts (Denmark, Sweden, Norway) talking about buying/selling, increasing/decreasing their holdings in SAS, like regular shareholders.