Investing in Companies Emerging from Bankrupsy Protection

One word you hate to hear in the investing enviroment (unless you're into shorts) in bankrupsy... Theres not really anythign good about it... or is there...

There are a few reasons to consider why companies that are imerging from bankrupsy protection may be a good idea to consider... Lets look at a few of them...

Contracts with Employees/Unions
- When a company is losing money its pretty hard to press for raises or more benifits...
- When a company is in such a bad place it is teatering on the brink of extisction its not unlikley that you can manage to get a new and better (from the company and shareholders standpoint) contract from your workforce... sure they might not like it a whole bunch... but when given the choice between a smaller pay check or none at all the choice isnt that hard
- Debt Loads- If your in bankrupsy protection lenders will start to cut their losses... Companies who emerge from bankrupsy protection come out with a much ligher debt load, and better agreements from lenders... who wouldnt love to be able to borrow money... have the goverment tell everyone you borroewed from to leave you alone... and then pay back 1/2 of it... I know i would...

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