If you have a business with a 47-year track record of success, and you have your own airplane, and you have several million in assets, you think you're on top of the world, right?
Well.
It turns out that longevity doesn't ensure business success, because markets change, and during a depression, the ability and willingness of the public to pay money for anything changes. And it doesn't help to have several million in assets if you have more debts than assets.
Which brings us to the sad tale of the Nomads, a 47-year old travel club, and the last remaining travel club with a plane.
Reading the Detroit Free Press article about the Nomads makes me sad, as to most Chapter 7 Bankruptcy cases where a long-time winner gets laid to rest.
On the other hand, I have a suggestion for a business that knows it's sliding into the zone of insolvency with blinding speed; it's probably a good idea NOT to keep taking money if you know you can't provide the goods, you know?
There's also this issue: why bother with a Chapter 7 Bankruptcy for a business? Generally, nobody who has a personal guarantee of the business debt is going to get a benefit, so why bother?
Well, there is this: it will make the phone stop ringing to a fairly substantial extent.
And there's also this: sometimes, if the debtor has a buddy with some dough, they can buy back the critical assets of the business from the bankruptcy trustee, and start over with the critical assets, but without all that irritating debt!
But that didn't seem to be the motivation of the Nomads Chapter 7 Bankruptcy.
Well.
It turns out that longevity doesn't ensure business success, because markets change, and during a depression, the ability and willingness of the public to pay money for anything changes. And it doesn't help to have several million in assets if you have more debts than assets.
Which brings us to the sad tale of the Nomads, a 47-year old travel club, and the last remaining travel club with a plane.
Reading the Detroit Free Press article about the Nomads makes me sad, as to most Chapter 7 Bankruptcy cases where a long-time winner gets laid to rest.
On the other hand, I have a suggestion for a business that knows it's sliding into the zone of insolvency with blinding speed; it's probably a good idea NOT to keep taking money if you know you can't provide the goods, you know?
There's also this issue: why bother with a Chapter 7 Bankruptcy for a business? Generally, nobody who has a personal guarantee of the business debt is going to get a benefit, so why bother?
Well, there is this: it will make the phone stop ringing to a fairly substantial extent.
And there's also this: sometimes, if the debtor has a buddy with some dough, they can buy back the critical assets of the business from the bankruptcy trustee, and start over with the critical assets, but without all that irritating debt!
But that didn't seem to be the motivation of the Nomads Chapter 7 Bankruptcy.
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