The threat of insolvency is more remote, because a bankruptcy would now cost public money.
Reuters reports the move as part of its bankruptcy filing and cost cutting.
That is far below what most project-financiers would expect for assuming the risks of corporate bankruptcy, construction delays and cost overruns.
Other common reasons: Reorganization or restructuring of a company, cost cutting, and bankruptcy.
Your critics argue that GM and Chrysler would have emerged leaner and more competitive at no taxpayer cost from a regular bankruptcy, and all stakeholders would have shared sacrifice.
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This is a cost that now causes a bankruptcy in America every 30 seconds.
Since 2000, around 100, 000 airline employees have gone, and carriers have secured billions of dollars in cost savings using Chapter 11 bankruptcy or the threat of it to persuade workers to make concessions.
This has allowed Michelle White, of the University of California at San Diego, to study what happens when bankruptcy rules remain the same, but the cost to the borrower changes.
It now hopes bankruptcy reorganization will allow the same kind of cost cutting and work-rule changes that have boosted operations at other airlines, said Jon Snook, American's vice president of operations planning and performance.
He had no savings, and if he'd elected to claim bankruptcy, Rayburn would have had to charge the cost on his credit card.
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In the U.S. it took a government-brokered bankruptcy for GM to get serious about attacking its bloated cost structure.
Cost overruns and construction delays sent utilities into bankruptcy, led to the cancelation of 63 planned reactors and set back governments and ratepayers billions of dollars.
Nothing like a shopping spree at a fire sale--courtesy of would-be fiber giants like NorthPoint Communications and 360 Communications as they spiral into bankruptcy and unload their assets at a fraction of the cost.
The whole imbroglio is small potatoes for the Fertitta brothers, Frank and Lorenzo, who pulled their Station Casinos through bankruptcy and now control a large part of the lower-cost local gambling market in Las Vegas.
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America's big airlines, faced with the threat from low-cost competition, have extracted concessions from unions through Chapter 11 bankruptcy procedures.
If income is declining, which it is both because vacancy rates are rising and also because local councils are cutting the amounts they are willing to pay for care, labour is a fixed cost, then obviously rent needs to be reduced to avoid bankruptcy.
Investor enthusiasm is high because GM, following its government-run bankruptcy in mid-2009, is much healthier now, with a competitive cost structure and clean balance sheet.
Many competitors have been through the bankruptcy mill of late, which has helped them trim labor expenses, at the cost of union disgruntlement.
Mitch Daniels, former Bush administration budget chief, told me GM and Chrysler would have been easier to turn around, and at much less cost to the taxpayer, if they'd gone through the traditional bankruptcy route, stripping them of their pension liabilities and debts.
The rumors that the airline may seek bankruptcy protection have been making the rounds for a while now as the airline has a burdensome cost structure compared to peers like Delta Airline or United Continental.
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Bankruptcy cases, which commonly drag on for a decade, discourage banks from lending and raise the cost of credit.
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