Joseph Luzinski’s superb, down-to-earth, thumbnail explanation of various bankruptcy options in his Nov. 2 article, Is filing for Chapter 11 bankruptcy a sword or a shield?, should open eyes and ease concerns about the proper and legal use of bankruptcy filings.
Luzinski uses the example of a celebrity who legally used the U. S. Bankruptcy Code to his advantage when several businesses fell on hard times and concludes by pointing out: “While his creditors had to take a financial haircut, he did too.” Unfortunately he didn’t address the plight of the celebrity’s unsecured creditors, which would probably include workers, suppliers, contractors and subcontractors.
Did the celebrity take care of his unsecured creditors? Or, if he made out like a bandit, as claimed, did he help the little people? Clearly he fired them, but did they, at least, get severance pay or partial payment of invoices?
Having posed the questions, I leave it to others to find the answers.
Tom Murphy, Miami