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0 pointsjahewson2y ago0 comments

I get your point but to free up cash for the employees he’d have to bail out all the other creditors first. Not a good precedent to set.

0 comments

Under US bankruptcy law, cash first goes to employees, then creditors (including contractors), then owners.

pests2y ago

Yep, that is how the law works. In this case cash is going to the creditors. Employees aren't owed anything, then the next in line are the creditors.

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0 pointsjahewson2y ago0 comments

I get your point but to free up cash for the employees he’d have to bail out all the other creditors first. Not a good precedent to set.

Under US bankruptcy law, cash first goes to employees, then creditors (including contractors), then owners.

pests2y ago

Yep, that is how the law works. In this case cash is going to the creditors. Employees aren't owed anything, then the next in line are the creditors.

j / k navigate · click thread line to collapse