Originally Posted by ContinentalFan
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.
This Canadian pleads guilty to wilful ignorance of the legal terms used in these discussions and for that I appreciate the post, COFan. The term
reorganization as it's used more often here is a corporate restructuring to prevent having to file bankruptcy at all; a shake up, a turn around, whatever you want to call it.