Quote:
Originally Posted by kjk
Is Chapter 11 the same thing in the Netherlands as it is in the States? Chapter 11 means you have time to re-organize/re-group (i.e. protection from creditors) while Chapter 7 is basically last one to leave, turn off the lights? Or did they file for Chapter 11 protection here in the States?
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iRex is going into a managed procedure for declaring bankruptcy. This is partly similiar to chapter 11. There exist basically four options:
- They will survive as a reorganized company and repay their debts (=debt settlement agreement and recapitalization of the company)
- They will only survive as long as it takes to repay their debts (=judicial debt settlement followed by a slow liquidation of the business as long as it takes to satisfy creditors)
- They will "turn off the lights" (nothing left to satisfy creditors, no further business possible)
- The company or at least some parts of it will be bought by another company or an investment group
Option 1 and 2 could take up to 3 years. The process will be controlled by a insolvency practitioner and a judge.