Originally Posted by
Finessed
You have to convince a judge to file Chapter 11. with the amount of debt over 42 BILLION, and daily cash burn over 10 million, they have zero shot filing CH11, zero. If we can get a quick recovery it would be smart to file chapter 11 in American Airlines case, but I don’t see a quick recovery. With the democrats running the show for the next 2-4 years, spending will increase, inflation will increase, we’ll take our time with opening the country.
Also experts are projecting the price of oil to increase from $50 to $100 a barrel. Saudi Arabia announced cutback in oil production. The last time that happened was during the Bush administration because SA felt threatened. Now they’re feeling threatened by the Biden administration so they’re playing games again.
Anyone desiring to reorganize their business can file Chap 11 as long as they can pony up the $1039 or so necessary to file and the quarterly cost of a US Trustee.
Legally, anyone except a governmental agency, an estate, a nonbusiness trust, a stockbroker, a commodity broker, an insurance company, a bank, or an SBA-licensed small business investment company may file under Chapter 11. An individual may not file under Chapter 11 if he or she has had another bankruptcy case dismissed upon certain grounds within the last 180 days. As a practical matter, Chapter 11 is available to virtually any business or person able to afford the expenses of the case.
If the judge doesn’t like the reorganization plan or the creditors have valid complaints, he/she may not grant the filer relief from their debts, and may even reject the reorganization plan and appoint a trustee to manage the bankruptcy but the judge has no mechanism to simply refuse a filed petition as long as the person isn’t in one of the above prohibited categories.
Upon filing a voluntary petition for relief under chapter 11 or, in an involuntary case, the entry of an order for relief, the debtor automatically assumes an additional identity as the "debtor in possession." 11 U.S.C. § 1101. The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed.
https://www.uscourts.gov/services-fo...kruptcy-basics