rwehap
"......If the cases go south, could the company use a reorg under Chapter 11 as protection?......"
The answer to that is a "qualified yes". Remember, however, the court might not grant a petition for reorg under an 11 for a myriad of reasons. .......one of which is the issue of fraud. Because there are outstanding allegations of fraud, the plaintiffs might convince the court to reject the petition alleging that the company is attempting to circumvent the civil action. It might punt the petition down the field until the law suits are resolved. However, It's possible the court could accept the petition with the understanding that, should there be additional liability established as a result of the civil action, the case would be reviewed for a possible redetermination. Bottom line? Who knows?
One thing I do know. The Bankruptcy Court is a powerful institution and pretty much does what it wants....with minimum oversight.
And yes.......I spent another night at a Holiday Inn Express.
