Saturday, February 4, 2012

Chapter 11 killer's

The last failure in Spain again shows that bankruptcy is not nothing but a liquidation form.
While in other countries is a tool for companies to have a period of time unless the demands of creditors and can successfully renegotiate a viability plan, see the recent case of American Airlines or Delta Airlines presented the "chapter 11 "in September 2005, to cite two examples in the industry, here in Spain bankruptcy has only served to liquidate the company, in fact the ultimate goal of most companies that use this procedure (Air Madrid, Air Comet).
The insolvency regulation, although recently renovated, looking more preserve the rights of creditors that the viability of the company, much more complicated, both for the vast majority of "bankruptcy administrators" basically legal training, the Spanair has gone to "touch" to a law firm controlled by the Gispert Group "curiously" related with the president of the Catalan Parliament, to the managers of the companies seeking, as it seems in this case, throw in the towel after failing the resource who have been welcoming in recent times, institutional manna.
The other big difference with the suspension of payments that have been able to regain economic viability is presented in a reasonable long before the box is dry, because then if it is impossible to reverse.
It's a shame that an instrument used elsewhere to revive companies in crisis, something that is outside the normal business, here becomes a purely administrative procedure to close a new company more.

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