Members jdechant Posted September 28, 2002 Members Share Posted September 28, 2002 Mars Music filed for chapter 11 bankruptcy... what effect, if any, can we expect to see this have on their prices?? will they be forced to liquidate all their stock of equipment?? Link to comment Share on other sites More sharing options...
Members Greenshoe Posted September 28, 2002 Members Share Posted September 28, 2002 Originally posted by jdechant Mars Music filed for chapter 11 bankruptcy...what effect, if any, can we expect to see this have on their prices?? will they be forced to liquidate all their stock of equipment?? Not necessarily. If it is indeed chpt 11, then Mars has basically filed for protection from its creditors (i.e. creditors can't go after Mars' assets and Mars won't be making any debt payments), giving them a window of time to restructure the company - laying off employees, maybe closing some of its stores, maybe selling off SOME of its excess inventory at deep discounts, renegotiating their loans, etc. all while not having to pay off any debts for a short time. If during chpt 11 they can't turn the company around and keep it afloat, the creditors have the opportunity to go after Mars' assets and liquidate the company and its remaining inventory. The airlines have done this many times in the past, except that they go to Congress to ask taxpayers to bail them out. Link to comment Share on other sites More sharing options...
Members jdechant Posted September 29, 2002 Author Members Share Posted September 29, 2002 thanks for the reply... I know under chapter 11 you are allowed to keep items for your business up to a certain amount and a certain amount of personal items.... but that's for an individual... I wasn't sure how chapter 11 worked for bigger companies... Mars has already closed 9 stores, down to 41 from the 50 it had at its peak... P.S.... just trying to bring some business related threads to the music business forum.. Link to comment Share on other sites More sharing options...
Members StratKat Posted September 30, 2002 Members Share Posted September 30, 2002 I dunno but im hearng the same thing on many sites as well. Some say its chap 11 and others say its deadsville. Link to comment Share on other sites More sharing options...
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