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charcircuit 12 hours ago

[flagged]

mikelitoris 12 hours ago | parent | next [-]

Is this an actual question? I’ll answer it anyway: because they had nothing to do with financial market risk shenanigans and just wanted to get somewhere.

charcircuit 12 hours ago | parent [-]

[flagged]

_moof 12 hours ago | parent | next [-]

You've just decided, all by yourself, that customers are "low priority people." Why?

charcircuit 12 hours ago | parent | next [-]

The law specifies the order people get paid out for a bankruptcy.

_moof 12 hours ago | parent | next [-]

Which law? 14 CFR Part 260 requires air carriers to refund tickets on cancelled flights.

charcircuit 8 minutes ago | parent [-]

https://www.law.cornell.edu/uscode/text/11/507

14 CFR Part 260 I don't see having precedence. It is hard to punish a company that no longer exists.

dented42 12 hours ago | parent | prev [-]

I think the law is wrong…

mrcartmeneses 12 hours ago | parent | prev [-]

[flagged]

KaiserPro 12 hours ago | parent | prev [-]

Customers are creditors, as they have given money in credit in exchange for a service at a later date.

LeoPanthera 12 hours ago | parent | prev | next [-]

If a customer hasn't taken their flight yet, they are a creditor.

RubberbandSoul 12 hours ago | parent | next [-]

Being a consumer/customer is different from being a creditor

charcircuit 12 hours ago | parent | prev [-]

An unsecured creditor which gets paid out after secured creditors.

iamflimflam1 12 hours ago | parent | prev | next [-]

I’m no expert, but a bit of googling tells us.

The laws around bankruptcy define the priority of who gets paid and in what order:

- Secured Claims

- Unsecured Priority Claims

- Unsecured Non-Priority Claims (General Unsecured)

- Equity Security Interests

Each layer has to be paid in full before the next layer.

Unsecured Priority Claims - this includes customers who have paid for services.

Ekaros 12 hours ago | parent [-]

Also with secured claims. What are they secured against? That is what is the collateral defined. If it is not cash... Well they will get their claims when collateral is liquidated.

_moof 12 hours ago | parent | prev [-]

The customers are creditors.

victorbjorklund 12 hours ago | parent [-]

It is a fair question. Normally customer creditors ends up last in the line.

_moof 11 hours ago | parent [-]

Aviation has stricter laws when it comes to customers. I don't have citations off the top of my head but it's not a normal customer-business relationship.

EDIT: 14 CFR Part 260.