said by KrK :

To me this seems inherently wrong.

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.

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.

said by Tzale :

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.

said by KrK :

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.

said by Mce Saint :

Nice story. Except that for secured creditors it doesn't work like this.