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Old June 28, 2008, 09:33 AM
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GordonJ GordonJ is offline
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Join Date: Aug 2006
Location: West Palm Beach, FL
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Default Chpater 11 is for corporate restructuring...they have money.

Quote:
Originally Posted by MichaelRoss View Post
Kevin,

While he did advocate a Starving Crowd he also said to
"Sell to players with money".

Are you sure... people who file for bankruptcy have the money available to buy whatever it is you are selling to them?

Michael Ross

It is a good point, however, we've seen many big companies go through Chapter II and emerge on the other side, and remain in business.

Although they didn't officially go through Chapter 11 procedures, Lee Iococca went to Washington DC and got the equivalency of a restructuring for Chrysler...and in today's headlines... they may have to go through the real thing this time. Anyhow,

What Chapter 11 does for a company is to allow it to shine a spot light into the dark corners of waste, duplication, mis-management, etc. and hopefully find a way to stay in business.

During these times an '11' company does indeed spend money...and if you have a service that caters to them, it might be a great time to deal with these companies.

You are right Michael to be aware of the money crunch, if you are consulting, you don't want to be on a creditor list, get paid as you go along (cash those checks quickly HA!)

Chapter 11 buys some breathing room, so kpalmquist may have a very starving market, and shouldn't fear that they "have no money".

Since we are headed into a DEPRESSION, we will see more and more bankruptcies and therefore, opportunites for those that can serve the needs of companies in distress.

Gordon Jay Alexander

Last edited by GordonJ : June 28, 2008 at 09:40 AM.
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