From: stephen@sprunk.org
On 22-Aug-14 13:20, Adam H. Kerman wrote:
> Stephen Sprunk wrote:
>> On 22-Aug-14 11:20, Adam H. Kerman wrote:
>>>> While the actually responsible pondscum will take their golden
>>>> parachute and get away with it.
>>>
>>> A golden parachute from a bankrupt company? Uh, no.
>>
>> Bankruptcy means the company has decided to ask a court to allow it
>> to not pay some of its debts because it is insolvent, but that
>> doesn't mean the company has no cash or is unable to pay _any_ of
>> its debts. Wages (including contracted bonuses) are relatively
>> high on the priority list of debts for bankruptcy courts, unlike
>> pension benefits that are near the bottom of the list.
>
> Again: Stephen's reading comprehension problem rears its ugly head.
> Golden parachute payment is neither wages nor bonus nor pension.
> Golden parachute payment is quite the opposite of a bonus. In fact,
> the CEO gets paid to go away and go make some other company fail.
A bonus for being fired is little different from a bonus for being
hired. Either way, it's still a bonus, which is a subset of wages.
> You're going to have cite chapter and verse of Canadian bankruptcy
> law to make the point that MM&A's top people were entitled to
> bankruptcy protection of the golden parachute payments if you insist
> I'm wrong.
I'm not even sure what you're asking for here.
When a corporation declares bankruptcy, it submits a list of all its
debts. Secured debts are paid first using the named security, then
unsecured debts are paid using the remaining assets (if any), in an
order specified by bankruptcy law--and wages are at/near the top.
S
--
Stephen Sprunk "God does not play dice." --Albert Einstein
CCIE #3723 "God is an inveterate gambler, and He throws the
K5SSS dice at every possible opportunity." --Stephen Hawking
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