Zain's choice ✔️

11: corporate bankruptcy

"Tell him that I want to talk whenever he is ready"

Eman doesn't understand why he should be the one to tell pops since I am perfectly capable of texting the old man myself. But he knows better than to ask why.

Actually, like the brights, the Gaddos are facing corporate bankruptcy.

For the Gaddos, it's not easily explainable. To suddenly loose billions is definitely irresponsible of them.

But as it turns out, the family are using more money than they can currently afford to. Pops panicked. He isn't a very good business man to start with. So when it became apparent to him that things were going south, his panic had put the final nail in their coffin.

How?

Instead of him to keep a cool head and plan ahead like any strong company does, pops allowed himself to give up hope.

The company had this big project going on. Since there is no longer any crude oil to be had in their wells, they needed to move into buying from others. The problem is, pops had unwisely ventured to stake it out with the Brights who were internally facing a bigger issue.

When a company is facing bankruptcy, they either declare chapter 7 or chapter 11 bankruptcy.

For the chapter seven type, they will have to turn over the company to a trustee so they can liquidate their assets to pay off 'priority clients' before shareholders or bond holders in the company.

The chapter eleven though, allows the company to reorganize themselves and plan for the future while they are still going on with trying to recoup their losses and maybe launch a good plan on how to start operating again.

Here is Pops's big mistake!

He isn't in such dire straits that he had to declare chapter seven immediately. He did not trust his ability to bring the company out of its trying times though. So he allowed himself to turn over the oil company to a board of trustee in which the company assets were sold as junk.

They could barely pay their priority clients not to talk of bondholders or share holders!

The brights immediately bought some of the assets though. And pops has Pappy and the others use their stock to buy shares from the brights so they don't lose everything. Which is a good plan initially. But the Brights are new in the business. They used to only own clothing companies and agricultural lands.

But now they are trying to go into the oil business.

Unfortunately, silly mistakes on who they aligned with had succeeded in bringing them down.

Very soon, if they don't recoup their losses to keep their clients calm, they will have to declare corporate bankruptcy too.

It would look like their stocks are steady, albeit low. But soon, everything will crash and both the Brights and the Gaddos will be on their knees.

Truth is, pops did not tell me all these. They didn't trust me with it, which is another character flaw. If they had asked for my help, the Gaddos will be thriving right now.

Marwan had intel on the details because one of his friends had lost a lot of money in the venture and so he had investigated the cause to help his friend out.