r/wallstreetbets • u/JadedAsparagus9639 • 5d ago

News Hooters files for bankruptcy

https://www.cnn.com/2025/03/31/business/hooters-restaurant-bankruptcy?cid=ios_app
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u/4hunnidbrka 4d ago

im not sure that adds up, the doctrine of piercing the corporate veil would apply in that instance, because the shell company is merely used to defraud creditors by the PE firm

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u/smootex 4d ago

Don't try to use logic on my meme subreddit.

But seriously, what the fuck has this subreddit come to when this bullshit is upvoted with zero critical response.

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u/DelightfulDolphin 4d ago

Oh yeah? So, what did musk just do w having his ai buying x?

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u/4hunnidbrka 4d ago

it differs from the above because a bank does not have the rights a stock holder has, xAI's shareholders may dissent the acquisition or file for a derivative suit even before the damage is done, while a bank may only sue when it is defrauded

the material point being that, the example above will not exactly allow the PE firm to escape unscathed, while elon/directors may go unharmed, because the majority shareholders have assented to the acquisition(even if in the eyes of most it is detrimental)