KrKHeavy Artillery For The Little Guy Premium Member join:2000-01-17 Tulsa, OK Netgear WNDR3700v2 Zoom 5341J
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KrK to Hpower
Premium Member
2009-Mar-27 3:53 pm
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. |
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Sounds just like something Charter would do. Thats the type of people that run the place. |
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jester121 Premium Member join:2003-08-09 Lake Zurich, IL |
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. |
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rradina join:2000-08-08 Chesterfield, MO |
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. |
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TzaleProud Libertarian Conservative Premium Member join:2004-01-06 NYC Metro |
Tzale to KrK
Premium Member
2009-Mar-27 10:08 pm
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. |
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KrKHeavy Artillery For The Little Guy Premium Member join:2000-01-17 Tulsa, OK Netgear WNDR3700v2 Zoom 5341J
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KrK
Premium Member
2009-Mar-28 8:32 am
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. |
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Mce Saint Premium Member join:2007-10-03 Saint Louis, MO |
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. |
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TzaleProud Libertarian Conservative Premium Member join:2004-01-06 NYC Metro 1 edit |
Tzale to KrK
Premium Member
2009-Mar-28 4:40 pm
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 |
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KrKHeavy Artillery For The Little Guy Premium Member join:2000-01-17 Tulsa, OK Netgear WNDR3700v2 Zoom 5341J
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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. |
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Mce Saint Premium Member join:2007-10-03 Saint Louis, MO |
Mce Saint
Premium Member
2009-Mar-30 12:36 pm
But banks - to which the poster was referring - usually are. |
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KrKHeavy Artillery For The Little Guy Premium Member join:2000-01-17 Tulsa, OK |
KrK
Premium Member
2009-Mar-30 1:44 pm
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. |
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