Coronavirus and Stock Markets - Thoughts?

[engineer]

@engineer

Any retailer weighing filing for bankruptcy has no idea when stores may reopen again, and what the world will look like when they do.

“Filing for bankruptcy doesn’t create a sudden cure for the virus, it doesn’t create a cure to open stores — so why incur the expenses of Chapter 11 when you’re not going be able to do anything while business is closed?” said Michael Sirota, co-chair of the bankruptcy and corporate restructuring department at Cole Schotz

It has begun

• J.C. Penney has chosen not to make a roughly $12 million interest payment due on April 15.
• It has now entered a 30-day grace period “in order to evaluate certain strategic alternatives, none of which have been implemented at this time.”
• Penney has been in talks with its lenders since the middle of 2019, to strengthen its balance sheet.

JC Penney says it skipped a $12 million interest payment as coronavirus...

@engineer

Think of it like a long game of chess.

@Noobieofshares You may find it interesting following how all them retailers are coping with repaying liabilities in 2020 when there’s barely any foot traffic and their online operations are not up to 2020 standards. This could be educational, since you asked what happens when (or if) firms get taken overs by lenders.

@Noobieofshares

Iv just read about US banks or US Loan companies taking over US oil companies that are struggling on the verge of bankruptcy. So say you have shares in one of those companies, what would happen to your shares?