Chapter 11 is nothing more than a tool. Not surprised Harry Hindsight doesn't "get it".
But to those uninitiated in bankruptcy laws, four instances of corporate bankruptcy in a row can seem staggering. “To the ordinary person in the street, it may seem surprising, but certainly not to me,” said Reed Smith partner Michael Venditto, who has represented clients in high profile Chapter 11 cases, including bankrupt airline TWA. “Chapter 11 is how you reshape and restructure a company that has problems. It doesn’t indicate anything nefarious or even bad management.”
More important, said Venditto, are the repercussions Chapter 11 might have for creditors versus, say, liquidation. “You can have a visceral reaction to the fact that this company has gone through Chapter 11 multiple times, but the bondholders look at it and the alternatives are much, much worse. What is an empty casino sitting on the Atlantic City boardwalk worth? If it’s operating and it’s got cash flow and income, it may not be able to pay back every cent on the dollar, but the creditors are better off in the long run.”
Atlantic City lawyer Viscount doesn’t believe Donald Trump himself should be held accountable for any of his company’s bankruptcies — his creditors, he said, knew what they were getting themselves into when they lent Trump money over and over again. “They’re all big boys and girls,” he said. “They’ve all played this game before, in the insolvency space. The company that possessed his name filed bankruptcy because it was overleveraged. What does that tell you? People want to lend him money. He does grandiose things with it.”
http://www.forbes.com/sites/clareoc...ow-donald-trump-made-bankruptcy-work-for-him/
