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Jack in the Box to file bankruptcy (pg. 2)
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| |Thrax| |
| quote: | Originally posted by bucke
swamper is a "she"??????? :wtf: :wtf: |
no, amber the interwebs boardwhore. |
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| Bondor |
| quote: | Originally posted by 72hrpartyanimal
I 'n hate you guys. :mad: |
do you hate me? |
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| DJ Reese |
I would have starved to death long ago without Jack.
So just wondering...what does filing for backruptcy mean for companies like Curcuit City and Jack in The Box? They're simply just gonna close their doors. Are my 99 cent tacos gonna cost $1.25 now? |
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| raymond enrique |
| quote: | Originally posted by sugar&ice
No bail out? |
i wouldn't be surprised since it's the "in" thing to do now for failing a business. |
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| 72hrpartyanimal |
| I hate laker fans and hope Jack N Box burns!!!! |
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| henryv |
Sun 28 vs Golden State 6:30pm
get ready. |
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| djjoshuaallen |
| quote: | Originally posted by DJ Reese
I would have starved to death long ago without Jack.
So just wondering...what does filing for backruptcy mean for companies like Curcuit City and Jack in The Box? They're simply just gonna close their doors. Are my 99 cent tacos gonna cost $1.25 now? |
i think not, the government plans to use our tax dollars to subsidize the cost of tacos. So you will still get 2 for $0.99, and laker attendees will get two free every home game:D |
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| DJ Reese |
| quote: | Originally posted by djjoshuaallen
i think not, the government plans to use our tax dollars to subsidize the cost of tacos. So you will still get 2 for $0.99, and laker attendees will get two free every home game:D |
Well, as long as our tax dollars are being put to good use. Can't go wrong with free tacos and Lakers game in the same sentence. And $1.25 for 2 tacos or a JBC would be a crime agianst humanity ;) |
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| DaveT |
With Bankruptcy, it basically relieves them of paying their creditors or only paying back a partial amount.
But you have to be approved by a court for bankruptcy....and a part of your bankruptcy is pulling back on just about anything not making money or is causing the business problems. This leads to closing of the stores....though that doesn't always happen...
it also forces reorganization of staff....so more layoffs.
From there, they have to reorganize and restructure their business model. If they feel they can do this without closing stores, then they can. Down the road, this can actually lead to lower prices or better deals. Just because they need to get people to come back or start coming.
When they start getting solid cash flow again, they come out of bankruptcy. And from there, they can work on re-expanding. |
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| gehzumteufel |
| quote: | Originally posted by DaveT
With Bankruptcy, it basically relieves them of paying their creditors or only paying back a partial amount.
But you have to be approved by a court for bankruptcy....and a part of your bankruptcy is pulling back on just about anything not making money or is causing the business problems. This leads to closing of the stores....though that doesn't always happen...
it also forces reorganization of staff....so more layoffs.
From there, they have to reorganize and restructure their business model. If they feel they can do this without closing stores, then they can. Down the road, this can actually lead to lower prices or better deals. Just because they need to get people to come back or start coming.
When they start getting solid cash flow again, they come out of bankruptcy. And from there, they can work on re-expanding. |
You should of added one more piece of info. There are 2 different types of bankruptcy.
| quote: | Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors. In chapter 7, the creditors collect their debts according to how they loaned out the money to the firm (also referred to as the "absolute priority"). A trustee is appointed, who ensures that any assets that are secured are sold and that the proceeds are paid to the specific creditors.
For example, secured debt would be loans issued by banks or institutions based upon the value of a specific asset. Whatever assets and residual cash remain after all secured creditors are paid are pooled together to be paid to any outstanding creditors with unsecured loans: e.g. bondholders and preferred shareholders.
Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It's much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It's important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.
If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments. |
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| djjoshuaallen |
| chapter 13 is the best |
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| gehzumteufel |
| quote: | Originally posted by djjoshuaallen
chapter 13 was the best |
That is for personal not business. ;) |
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