FlyerTalk Forums - View Single Post - US adds new fees, charges for drinks, ends all elite bonus miles (Merged Threads)
Thread: US adds new fees, charges for drinks, ends all elite bonus miles (Merged Threads)
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Old Jun 13, 2008 | 11:44 am
  #191  
bocastephen
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Originally Posted by tommyleo
While Chapter 7 may be the best move to allow US to survive, wouldn't Chapter 7 wipe out all shareholder value? Or does it depend on the structuring?
Chapter 7 is liquidation - game over, gone, goodbye. Think Pan Am, Eastern, etc.

Chapter 11 is re-organization. Chapter 7 definitely wipes out shareholder value, while Chapter 11 could, depending on the restructuring format vis a vis the issuance of new stock.
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