Quote:
Originally Posted by Ashasx
well if you are bankrupt, by definition you can't service your liabilities. Nothing changes in regards to that. All that changes is who gets the first crack at what's left, and that fundamentally changes the way banks will approach lending.
To say small cap producers shouldn't be in business makes no sense.
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Except often a lot of the liabilities can be serviced. A bankrupt oil company generally has remaining assets as well as liabilities. The previous court decisions were allowing the receiver to disclaim the liabilities and sell the assets; this decision means those assets have to be used towards addressing the liabilities first. Probably has some negative short-term consequences, particularly for investment, but better in the long run for Alberta taxpayers and the responsible players in the industry.