Bankruptcy seems the norm for U.S. based companies

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iHeartMedia files for bankruptcy to shed $10B in debt
March 15 (UPI) — iHeartMedia — the parent company that operates iHeartRadio and iHeartCommunications — said Wednesday it’s agreed to cut more than $10 billion worth of debt by filing for corporate bankruptcy.
The company said it’s reached an agreement with investors and creditors to cut the debt while continuing to operate normally.
“iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters,” CEO Bob Pittman said in a statement. “The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure.”
IHeartMedia said it has enough cash to continue operating through the Chapter 11 proceedings.…m_medium=1
In an economy in which all money is created via debt (formal or informal) bankruptcy is an intrinsic part of that economy. It is in fact a designed function of capitalism even in economies with durable currencies.
The laws governing bankruptcy are something else. They are just man made rules drafted by the force and whims of the political climate.
In our modern debt based economy all banks and governments as well as many corporations and half the human population are insolvent. There must be mechanisms to address defaults on debt.

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