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Thread: NWA paid bankruptcy counsel five months before Chapter 11 filing
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Old Jun 19, 2006 | 5:12 am
  #37  
socrates
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Originally Posted by ContinentalFan
I have actually been suckered into using the term "reorganization" as a short hand for Chapter 11. Companies that I have seen enter C11 are all technically bankrupt: more liabilities than assets. It seems that this innocuous term "reorganization" sounds better—it makes it sounds like it’s not a big deal!
FYI NWA has had NEGATIVE Shareholder Equity ever since their IPO following their LBO, so the simple matter of having more liabilities than assets does not make a company bankrupt
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