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This is a sub-selection from Good news I guess?


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

1 edit
reply to Hpower

Re: Good news I guess?

They will. They'll just wipeout their investors. They'll simply declare their old stock worthless, then issue new stock.

Companies can do things consumers can't. Consumers can't tell people they owe money too to get lost, never going to pay it back, no penalties. Companies can. They just reorganize and sometimes change the name slightly and act like they are a whole new entity with a clean slate--- except they keep the assets of the defunct company.

They're be some lawsuits, of course, but in the end Charter should discharge much of it's debt and get off pretty scot free.

Yep, told ya so:

"The cable television operator said last month it would restructure its debt under Chapter 11 bankruptcy protection on or before April 1 in a deal with senior creditors that wipes out common shareholders."

Isn't it nice? Tell the owners (stockholders) to go shove it, we owe you nothing, and we're never paying you back.

Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.

To me this seems inherently wrong.

--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

ender7074

join:2006-11-21
Saint Louis, MO
Sounds just like something Charter would do. Thats the type of people that run the place.


jester121
Premium
join:2003-08-09
Lake Zurich, IL
reply to KrK
said by KrK:

To me this seems inherently wrong.
Probably to a lot of people; unfortunately no one learns about this kind of thing in school, but this is a fundamental characteristic of corporations. In exchange for sharing in the profits and growth of the company, you risk your money as a shareholder but are likewise shielded from liability beyond your investment amount.

rradina

join:2000-08-08
Chesterfield, MO
reply to KrK
said by KrK:

...
Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.

To me this seems inherently wrong.

Replace bank with husband and unmarried men should be afraid. Very afraid.


Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
NYC Metro
reply to KrK
said by KrK:

They will. They'll just wipeout their investors. They'll simply declare their old stock worthless, then issue new stock.

Companies can do things consumers can't. Consumers can't tell people they owe money too to get lost, never going to pay it back, no penalties. Companies can. They just reorganize and sometimes change the name slightly and act like they are a whole new entity with a clean slate--- except they keep the assets of the defunct company.

They're be some lawsuits, of course, but in the end Charter should discharge much of it's debt and get off pretty scot free.

Yep, told ya so:

"The cable television operator said last month it would restructure its debt under Chapter 11 bankruptcy protection on or before April 1 in a deal with senior creditors that wipes out common shareholders."

Isn't it nice? Tell the owners (stockholders) to go shove it, we owe you nothing, and we're never paying you back.

Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.

To me this seems inherently wrong.

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
--
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
said by Tzale:

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
Sounds like a scam to me. All you have to do is get people to invest, then you can make some really bad business choices and wipe them out--- and you don't suffer.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

Mce Saint
Premium
join:2007-10-03
Saint Louis, MO
reply to KrK
quote:
Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.
Nice story. Except that for secured creditors it doesn't work like this.


Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
NYC Metro

1 edit
reply to KrK
said by KrK:

said by Tzale:

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
Sounds like a scam to me. All you have to do is get people to invest, then you can make some really bad business choices and wipe them out--- and you don't suffer.
Sounds to me like the investors who are being 'scammed' don't know what they are getting into.... Perhaps people should spend more time reading about how the stock market works? It's been this way for a long time... I don't want them to change anything now. Besides, if a company declares bankruptcy and their stock didn't immediately have no value, then it would pretty much by market forces from people selling immediately!

-Tzale
--
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
reply to Mce Saint
said by Mce Saint:

Nice story. Except that for secured creditors it doesn't work like this.
Yeah, but stockholders aren't typically secured creditors.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

Mce Saint
Premium
join:2007-10-03
Saint Louis, MO
But banks - to which the poster was referring - usually are.


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Read the post again, all he says is he doubts they'll be able to lower the debt by 8 billion, and I reply yes they will, they're wiping out the stockholders.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini