Originally Posted by Excargodog

Typically companies don't wait until funds are exhausted to declare bankruptcy. Nor is it required by law. Generally they do it while there is still money available to pay bonuses to the management executives that shepherd the company through the bankruptcy process itself.

https://www.bloomberg.com/news/artic...uptcy-keet26zl

When Republic declared bankruptcy in 2016 they had actually been profitable for eight straight quarters:

https://www.usatoday.com/story/trave...able/81035522/

But they could PROJECT that they were going to be unprofitable if they couldn't get rid of their fifty-seat flying, and convinced the bankruptcy judge to let them cancel those contracts and "right size" their company.

Only a a fool would think it couldn't happen like that again, or that management would wait until all resources were exhausted to go into bankruptcy.