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> 2002: Bankruptcy.

Why wasn't this the end?



Bankruptcy doesn't mean that assets will be destroyed. Valuable assets (including satellites, brand etc.) will be sold off to new owners, and the proceeds go to the lenders.

Two types of bankruptcy in the U.S.: liquidation and reorganization. The latter lets a company reshuffle assets and debt and schedule new payment plans to continue to exist as a going concern. It often wipes out shareholders.

in the US corporate bankruptcy allows the company to restructure its debts.

case in point: the three largest airlines in the US have declared bankruptcy at some point: United, Delta, American




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