Originally Posted by
ZeroTT
let’s say united wants to kill Air whiskey. They claim a contractual right to cease all flights on 14 days notice and withhold payment based on some breach. It’s tenuous claim but all of a sudden they have zero cash flow. Chapter 7, done.
a contract is only worthwhile if you can fund and survive a lawsuit
The creditors in Ch.7 would still be able to press a claim against UA. So UA would either need legit cause or be willing to fight and eventually lose a lawsuit. Hypothetically they might prefer to settle for pennies on the dollar years down the road. But that's pretty Machiavellian.