> Companies are not allowed to take cash or sell the furniture to pay out employ... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

		ttymck on Oct 20, 2023 \| parent \| context \| favorite \| on: Trucking startup Convoy closes operations with no ... > Companies are not allowed to take cash or sell the furniture to pay out employees...Any "retention bonuses" are to keep executives around for long enough to unwind the company in an orderly fashion. Could you help me understand where the line is drawn?

prasadjoglekar on Oct 20, 2023 [–]

This line is drawn by the bankruptcy court, where creditors have a voice and agree to key management being in place for a wind down.

ttymck on Oct 20, 2023 | [–]

Understood. What about before bankruptcy begins? Who decides whether to pay severance, and how is that decision informed?

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact