Originally Posted by krazykanuck

It'll be really interesting to see the ch. 7 petition. I'm not very familiar with priority of payments in a ch. 7; the courts usually tend to be pretty generous towards the consumer, where they can; ie: in a retail bk, gift cards are usually protected.

Anyway back to Sonder, it doesn't seem they've filed yet. All that said, my quick read of their 10-Q for 6/30, if this is a liquidation, I'm not sure what's here to liquidate. Sonder didn't seem to own anything, they leased hotel buildings under triple net leases and marketed them.

Company had $27M of cash as of 6/30 and burned close to the same amount of cash in H1. Seems pretty likely that they ran out of cash, tripped something in the Marriott agreement (which I haven't looked for yet), and everything fell apart. It's going to be a mess to try to figure out what kind of holdbacks there are between Sonder and the OTAs, Marriott, etc. This was an issue in the Spirit ch.11 because credit card processors are understandably wary about processing transactions between consumers and a financially troubled company, and may require deposits set aside for transactions that they process.