REPOST: Best to Restrucute, Go Private, or file BK?


JD MORRIS VIEW: Lehman Brothers, Washington Mutual, MCI Worldcom, Enron, Vitech America, etc. all would have been better to stay private.  Email or call me for details, but public companies have hard time restructuring and often find Bankruptcy (BK) as the only solutions.  Lehman Brothers was saved and restructured many times as a private company, but one little division based on mortgage back securities destroyed a company.  If you are private company, think restructuring vs. Bankruptcy. You can sell your company as one solution or restructure.

Selling your company is good option vs. BK because you can protect your equity and turn bad debt into equity.  So-called “prearranged bankruptcies” with debt players seem to be the option today vs. working with debt players.  I am big believer in moving debt players to equity. BK should only be used as the last option. However, most media companies are looking to prearranged BK as solution. Read More about media companies:

http://www.reuters.com/article/idUSTRE5BK2VU20091221

bull and Bear 78k

JD MORRIS VIEW: If you do not play the game, you can not win! Be bullish, play the game, and get your debt players to take an equity position.
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1 Comment

Filed under Investor Network, Sell Your Company

One response to “REPOST: Best to Restrucute, Go Private, or file BK?

  1. @SoCalForEx

    It does seem that pre-planned BK is hot these days. Sad for small equity holders and sub-debt.

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