Originally Posted by
742Dash
Do you have any examples of a public company that was turning a profit being deliberately run into bankruptcy?
Not bad strategy or misfortune -- a deliberate run into bankruptcy as the objective.
American. Over $4B in cash on hand. Convinced a BK judge that their debt structure was to become unstable unless BK restructuring of debt occurred.
Board of Directors actually replaced the CEO because he didn’t believe in bankruptcy and was stubbornly trying to renegotiate all labor contracts for over half a decade. BOD replaced him and promptly declared bankruptcy.