powerplay
12-24-2003 | 12:16 PM
#1
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From: Crystal River, FL
powerplay
If a company has filed for chapter 11 bankruptcy how does it have money to build and display boats at a boat show?
The NY show is no cheap venue, how do the people and vendors owed money feel about this?
When a company is in bankruptcy, who gets the deposit money on any sales that are made?
Curious...
The NY show is no cheap venue, how do the people and vendors owed money feel about this?
When a company is in bankruptcy, who gets the deposit money on any sales that are made?
Curious...
12-24-2003 | 12:57 PM
#2
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From: Minnesota
Tough call. I could understand the frustrations by those owed money. But aren't the chances of getting your money back better if the company can pull through and turn a profit again? Cuz they sure aren't going to get it if they go belly up.
Brian
Brian
12-24-2003 | 02:41 PM
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From: Rochester, NY
Not unusual for a company to prepay certain expenses prior to filing. Trade shows & advertisements aren't unusual in this regard. If they didn't pay show orgainizer, they couldn't be in the show. Most prepayments of that type are not refundable, hence can not be recovered as an asset in bankruptcy.
Cutting to the chase, the funds used to prepay the show expense may have been someones deposit on a new boat.
Cutting to the chase, the funds used to prepay the show expense may have been someones deposit on a new boat.
12-24-2003 | 04:15 PM
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From: Vice City & Tavernier, FL
Chapter 11 is used by a company to allow it to re-organize its affairs. It can continue to do business either as a debter in possession or via a trustee. It allows the company to get back on the right tract economically and avoid closing its doors. it is probably best for its creditors too....By appearing at the boat show, the company can obviously market its product and help itself come out of bankruptcy.
12-26-2003 | 09:15 PM
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From: N. NJ, Eastern LI
It will allow the company to continue to operate and generate sales. Increasing sales will allow the company to continue to operate with the intent to pay debts and other obligations, if those creditors and customers stick around. Just watch those out of state bank acounts under a different name!
12-26-2003 | 11:11 PM
#8
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QUOTE by Ed "How can it be better for it's (PowerPlay) creditors? Ed"
Good Question - if the company could not make it during their hey-day of when they had more orders than they could build, how can they do it now with a slightly tighter economy and a greater list of debtors? If there are 6 boats waiting to get built and there is no money to do it, and they go to the show that they paid for with the money to build these boats, then they accept deposits on 2 boats at the show, what happens? Not trashing them, not trying to start arguments, just looking for a REAL answer. What happens? Do the boats ordered get built? or do the first ones waiting in line get built then hope for more deposits to catch up?
Good Question - if the company could not make it during their hey-day of when they had more orders than they could build, how can they do it now with a slightly tighter economy and a greater list of debtors? If there are 6 boats waiting to get built and there is no money to do it, and they go to the show that they paid for with the money to build these boats, then they accept deposits on 2 boats at the show, what happens? Not trashing them, not trying to start arguments, just looking for a REAL answer. What happens? Do the boats ordered get built? or do the first ones waiting in line get built then hope for more deposits to catch up?
Caveat Emptor...
