[NSRCA-discussion] Hobbico Chapter 11????

[Jon Bruml]

That assumes new and intelligent management
Bankruptcy makes them a debtor in possession (dip)
The courts will appoint a manager of the DIP and then post petition financing will be arranged and they will become immediatlely an operational company
>From that point they will creat a plan to emerge from bankruptcy at the expense of their creditors and suppliers
If they cannot emerge then the company will be liquidated

Jon Bruml
Techstyles
Www.Techstyles.com
________________________________
From: NSRCA-discussion <nsrca-discussion-bounces at lists.nsrca.org> on behalf of DaveL322 via NSRCA-discussion <nsrca-discussion at lists.nsrca.org>
Sent: Wednesday, January 10, 2018 5:33:17 PM
To: Michael Cohen; General pattern discussion
Subject: Re: [NSRCA-discussion] Hobbico Chapter 11????

The short of it.... Chap 11 is restructuring, not liquidation and out of business.  So the most likely scenario (short term at least) is profitable proprietary / exclusive product lines will continue and less profitable ones will go away.

Regards,

Dave

Sent from my Sprint Samsung Galaxy Note5.

-------- Original message --------
From: Michael Cohen via NSRCA-discussion <nsrca-discussion at lists.nsrca.org>
Date: 1/10/18 7:59 PM (GMT-05:00)
To: NSRCA <nsrca-discussion at lists.nsrca.org>
Subject: [NSRCA-discussion] Hobbico Chapter 11????


So, just saw Hobbico is filing for Chapter 11 bankruptcy.  Since they own Tower Hobbies and Great Planes AND are a distributor of many lines in the US, what does this mean?  I still do buy some things that aren't pattern related and even though some is from the Local Hobby Shops, if distribution is gone, what happens then?


Mike Cohen
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