Originally Posted by
bluespoon
Because they still have the possibility of finding a suitor or some other hope under a second BK. Obviously they’re going to want to reduce costs further. What’s really bizarre is why didn’t they have a “real” BK the first time around. They had to have known they weren’t going to make money. I guess maybe not so obvious.
only reason for last ch11 was a $1.2 billion bond they didn't have money to pay back and unable to refinance. I doubt they would've even qualified for a real ch11. the company still had cash. but teddy lost hundreds of millions since that.......
now they are actually out of cash within this quarter probably, definitely within q4. without fresh capital a real ch11 is imminent.
the credit card processing company is getting nervous. if they pull the plug it creates a $950 million liquidity disaster and the company is history.