Quote Originally Posted by Aristophanes View Post
If they are exploring bankruptcy it's because their credit draw is against collateral not revenues. The foresee too little revenues to add repayment into the spreadsheet. Translation: their lenders have no faith in them. Not good.
Exactly. All their businesses are either in secular or cyclical decline.

I think they are hoping to try to get "debtor-in-possession" financing sooner rather than later given that the global banking industry is again running off the tracks.

I'm convinced that any financing will have to be accompanied by a restructuring plan with asset sales or shutdowns.