[KarlInOhio]

Am I the only one who has problems with companies using bankruptcy for financial maneuvers? Dump some contracts, screw over some vendors and then go on like nothing happened while leaving your competitors who didn't go bankrupt at a competitive disadvantage. Maybe corporate bankruptcy should only be used as a method of liquidating and fairly dividing the assets of the bankrupt company.

[Eric in the Ozarks]

Northwest is a sad example of big business self-dealing itself into bankruptcy. Al Checci & Co looted this company and if it hadn’t been for the state of Minnesota, they wouldn’t have lasted long enough to enter bankruptcy court.

[Zakeet]

Am I the only one who has problems with companies using bankruptcy for financial maneuvers? Dump some contracts, screw over some vendors and then go on like nothing happened while leaving your competitors who didn't go bankrupt at a competitive disadvantage.

Chapter 11 bankruptcy is a rather drastic measure - sort of like taking out your own appendix with a bottle of Scotch and a razor blade.

The company's old management is almost always sacked; the business is run by a trustee under the direct supervision of a federal judge. Collection actions are placed on hold along with nonessential cash payments while the court rewrites contracts and the business is streamlined. The idea is to try and salvage something for somebody where otherwise there would be almost nothing for anybody.

As with just about any other legal action, about the only persons certain to come out ahead at the conclusion of litigation are the lawyers.

[Moonman62]

All the problems after 9/11 made more than one airline insolvent. NW has sucked for a long time, but this was more than just a financial maneuver.

Maybe corporate bankruptcy should only be used as a method of liquidating and fairly dividing the assets of the bankrupt company.

Many companies that come out of bankruptcy are very successful. Look up the stock charts of NIHD or SHLD. Giving people and corporations a fresh start has been part of the American way since our beginning.

[Non-Sequitur]

Dump some contracts, screw over some vendors and then go on like nothing happened while leaving your competitors who didn't go bankrupt at a competitive disadvantage.

While at the same time management rakes in huge bonuses for doing such a bang up job? Yep.