Replies to post #16527 on Soupman Inc. (fka SOUPQ)

[SkinnyD]

If the CHAPTER 11 bankruptcy went through, why would GBI have to pay creditors of a company that is under the protection of chapter 11 bankruptcy and why wouldnt the petitioners of that chapter 11 bankruptcy stull own the company?

[OBE]

Not quite true, TK. BK is a process

that begins when a company files for protection from creditors while it tries to hash-out its future.

It's tantamount to "suing" someone or "indicting" someone for committing a crime. To say one is "indicted" is not to say one is guilty of wrongdoing. To say one is "being sued" doesn't mean one will lose an argument. It's the beginning of a court process that ultimately will be decided-upon.

The SEC places the "Q" on the ticker to warn investors that the company my soon be deemed insolvent. It doesn't mean the company IS insolvent.

There are several "steps" a company must achieve on its climb up-the-ladder to its goal.

It may be a reorganization, in the case of a Chapter 11, or a dissolution, in the case of a Chapter 7.

Either way, it ultimately ends when the Judge grants a DISMISSAL or a DISCHARGE.

Just as an indictment can end in an acquittal and a suit can end in favor of the person sued, a bankruptcy can end in a dismissal.

THIS BANKRUPTCY WAS DISMISSED. It was not DISCHARGED. The parties RESOLVED their dispute. The creditors were made whole.