- Joined
- Jun 16, 2003
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- 20,206
Speculation only.... I suspect the lender is secured against Survive's assets in the event of a collapse, that is my understanding, during bankruptcy proceedings there are secured and unsecured debts, secured gets first chop at the pie (from sale of stock, plant and any other assets) and unsecured get the crumbs. Any pre-paid customers are most certainly unsecured. Depending on any other secured creditors existence I suspect the lender in this case would recoup his loan (without interest) quite easily, but that will leave less for anyone else.
It's complicated.
http://thismatter.com/money/credit/bankruptcy/priorities.htm