Neoseeker : News : Bankruptcy isn't easy as THQ auction delayed and loan denied, next hearing on January 7
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THM Jan 8, 13
quote lKasHl
quote THM
Well, I'm awared that creditors/fiananciers need some sort of protection, but this must not be implemented at the expense of poor workers and above all, insteading of putting millions dollar back into the pockets of the CEOs in the midst of THQ bankruptcy, workers should have some sort of compensation/rights rather than forcing them to accept the ideology of 'pracitsing capitalist greed' that led to the GFC.

It's in the interest of the majority of the public to get some protection that compaines can't provide, in an age of global businees networks, (greedy) international financiers are too big to fail...

No need to sympathise as long as they've millions of dollars in their CEO pockets; I know where their compensation money will go next, i.e. to create another corporate empire at the expense of workers again.

Workers rights must come first!!!
On a moral basis I would prefer that the workers get the money, from a business standpoint its not practical though. Lowering the priority of creditor and financier claims increases the perceived risk in event of liquidation, the result would be higher interest rates and reduced financial availability which ultimately leads to reduction in funding of new initiatives since its either to costly/risky to undertake.

No company is too big to fail, that was one of the lessons from the GFC. Also financiers/creditors aren't necessarily huge corporations, there will undoubtedly be some smaller companies/private shareholders caught up in this.

Also, the priority schedule is not as bad as you think, listed in order of payment priority:

Liquidators costs
Creditors with fixed charge over assets
Costs incurred by an administrator
Amounts owing to employees for wages/superannuation (director limit $2000)
Payments owing in respect of workers's injuries
Amounts owing to employees for leave (director limit $1500)
Retrenchment payments owing to employees
Creditors with floating charge over assets
Creditors without security over assets
Shareholders (Liquidating distribution)

So overall employees come out better than creditors without securitised assets in the event of a liquidation and financiers (floating charge and shareholders) bear the brunt of the loss, not to mention that the CEO has a wage cap. So basically looking for a higher bidder will be beneficial for employees, creditors and shareholders, not to mention that its just good corporate governance to prevent management from doing anything dodgy.


quote Nagare
THM, the creditors are also full business as well and depend on their workers to make the decisions of which companies to invest in. When a company begins to tank, they need to try and make their money back or as much as possible in order to continue making future investments. Without them in the first place, THQ would have died longer ago and the workers that have been hired in recent years would never have a job in the first place.
Belive me, folks, the corporate reality is very different than you both think; we need to look at the underlying notion behind everything!!!!
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