Quote:
Originally Posted by Halanna
I don't know how to reconcile this type of news with headlines that blare, "The economy is improving!"
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If you were the new management and were given the choice between being $2.4 billion in debt with your stock price at $0.27, or claiming bankruptcy, having the stock price go to $0, but only $0.6 billion in debt (an you made a few million last year), it makes some financial sense. You will be able to pay off the debt 4 times faster (and compounding interest won't further put you in the hole.)
There might be something I am missing, but a lot of companies have done this and will continue to do this.