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Arthur T Knackerbracket has found the following story:
Frontier Communications is planning to file for bankruptcy within two months, Bloomberg reported last week.
The telco "is asking creditors to help craft a turnaround deal that includes filing for bankruptcy by the middle of March, according to people with knowledge of the matter," Bloomberg wrote.
Frontier CEO Bernie Han and other company executives "met with creditors and advisers Thursday and told them the company wants to negotiate a pre-packaged agreement before $356 million of debt payments come due March 15," the report said. The move would likely involve Chapter 11 bankruptcy to let Frontier "keep operating without interruption of telephone and broadband service to its customers."
Frontier reported having $16.3 billion in long-term debt as of September 30, 2019.
-- submitted from IRC
(Score: 2) by VLM on Tuesday January 21 2020, @05:04PM (1 child)
I don't disagree with you in a general sense, although, uh, thats not exactly how bankruptcy law works. Those guys are completely fucked in a bankruptcy like $0 return. There are scammy middlemen making tons of money, its just precisely everyone else in the game except those guys, LOL. The dudes you listed got a pitiful income stream maybe single digit percent at most for a couple years, and all that capital is up in smoke, gone.
Like... you gimme a dollar bill today, and I'll reciprocate by giving you three pennies every year for five years, finally I'll set your dollar bill on fire and we'll call it even... And when this doesn't happen, they gotta squeeze whatever doesn't collapse like this to make money. So they gotta squeeze 85 cents from every other sucka just to break even, and they don't wanna just break even, so say 90 cents, but nobody paying more than 3 cents per so they gotta F over and squeeze maybe 30 other companies.
Essentially the root cause of a lot of pain is low interest and inflation rates. There's not really any systemic risk or systemic corruption or "robbing" going on with 10% rate of return. 10% rate of return means you can handle around or less than 10% of the people playing the game being morons, which seems sustainable and survivable long term. There just aren't THAT many morons and scammers out there. 3% rate of return means 97 players outta 100 absolutely must NOT be morons, or everyone playing is gonna have to get their take outta the hides of poor little old ladies, which is just not sustainable.
Now why is economic growth in some weird perma-depression of dismally low percent? Probably not from being "too free market and capitalist" LOL.
(Score: 2) by RS3 on Tuesday January 21 2020, @06:00PM
Oh, I don't disagree with you either. I know all about bankruptcy and how things work. I try to be as brief as possible when writing a post, so I assume people know stuff and the backstory. I was referring to cases where company principals get huge salaries and bonuses, then sell off stock before the house of cards begins to fall. "Insider trading"? Maybe, but difficult to prove and prosecute.
It's all a giant pyramid scheme anyway.
This next thing is a very long-term philosophical discussion, like years or more than a lifetime: economics is one thing, but then you have to factor in the layer of finance and interest and things go off the rails. It's so interconnected complex. People make decisions about where to put their money based on return, right? But what if much of the gain is just financing financing, rather than invest in a new medication? Big pyramid scheme.
20-ish years ago I got invited to some financial seminar. I rarely get those things, and I usually assume it's some kind of scan, pyramid scheme, MLM, etc. Probably just pure curiosity, but I went. It was simple. They showed solid numbers for investment returns of CD, savings account, mutual funds, real estate, money markets, futures markets, stock return ranges, etc. Then they showed us the real money: financing credit card debt. It's insane. It's huge money, and if you think about it, someone is financing credit card debt. It's not well advertised, because those who are making the huge returns have been successfully keeping it very quiet.
It's all much too much for my brain right now- much more immediate problems in my life...