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

[Mike Mueller]

 Huge overhead is tough to overcome.
 One issue is who will supply them going forward? Suppliers need to get
paid.
 FWIW they are not the only company feeling the pain.
http://www.news-gazette.com/news/local/2018-01-10/hobbico-files-bankruptcy-layoffs-next.html
 This article paints a grim picture.
 Mike Mueller

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On Wed, Jan 10, 2018 at 7:41 PM, Jon Bruml via NSRCA-discussion <
nsrca-discussion at lists.nsrca.org> wrote:

> 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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>
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