Originally Posted by tcook052
Reorganization is one thing; bankruptcy is quite another.
I can fully apreciate the need to have plans in place and not rely on wishful thinking to imagine away the very real problems. However, something to me just smells funny when the top dogs start selling their stock knowing bankruptcy a strong possability, if not a forgone conclusion, a fact they weren't making public at the time. Remember, this wasn't five weeks ahead of actual bankruptcy filing, this was five months...
Just my two cents.
What people are talking about here (I hope) is reorganization under bankruptcy law: Chapter 11. Management normally brings in attorneys to assist with the planning required for this filing. It takes quite a time to prepare for the process. I don't think that NW has any current plans to file Chapter 7, which is the process of liquidation under bankruptcy. I could be wrong, but I sincerely hope that C7 is not the intent of the management of NWA. If GM is going to file anything, the company will most likely file file Chapter 11 of the US bankruptcy code to reorganize under bankruptcy--just like NW is doing at the moment.