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"Both parties want to preserve jobs and protect health care benefits for retirees by keeping Patriot on track for reorganization — and not liquidation," Mr. Hatfield said.
"The Consortium strongly believes that a CVA, not liquidation, is the best way to protect the club's value and legacy and consequently that is the approach presented in our offer".
Most of the ailing companies have filed for reorganization, not liquidation, under the bankruptcy laws, including the furniture chain Wickes, the housewares seller Fortunoff, Harvey Electronics and the catalog retailer Lillian Vernon.
The only positive note here is that bankruptcy is not liquidation.
Key points I believe are: Bankruptcy is not liquidation; bankruptcy means the cost structure and capital ownership changes, and probably management and board as well.
But, if most stakeholders will be better off and if we can minimize the surprise factor, then Chapter 11 reorganization (not liquidation) with government-sponsored DIP lending is the way to go.
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That underscores a Mutual Series theme: The most successful mergers are combinations, not liquidations.
"I've listened to the potential outcome of a newco, which they say isn't liquidation," said manager McCoist.
"I do not favour liquidation at all, it is not necessary," Whyte said.
Mr. Romney advocated for a managed bankruptcy, not a liquidation of the company.
Jeff Mostyn, Bournemouth's chairman, had to inject his own cash to ensure that they did not enter liquidation.
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