1. It’s bad for business (Ask Avaya), when your customers feel there is lack of stability, they start to get poached by companies who have not filed bankruptcy. We saw this firsthand when Avaya announced their 1st Chapter 11, it was even worse for Avaya during the 2nd Chapter 11 6-years later. Nothing is worse than having a CTO/CIO asking the Telecom dept “Find a more stable company”.

2. Chapter 11, although restructuring, doesn’t mean they make it – they could move to the Chapter 7 if the conditions are not met.