T - "Sure all those companies that declared bankruptcy can not do it again for 7 years, but if one of them is bought out by a "new" company with a different name and different directors then the cycle can spin around again because they are no longer the same company even with all the same assets."
Actually a corporation may file Chapter 11 as often as it wants. The general bankruptcy rules are much more complicated as you'll see here:
http://ourbendlawyer.com/repeat-bankrup ... tcy-again/"The Bankruptcy Code imposes time limits, or waiting periods, on discharges in Chapter 7 and Chapter 13 bankruptcy proceedings. For...Chapter 11 and Chapter 12...there are no time limits and your debts can be discharged as often as you file bankruptcy."
I don't recall the oil company but it recently filed Chapter 11 about 2 years after an earlier C11 filing. But remember what filing Chapter 11 bankruptcy generally does: the company comes out of the "reorganization" in relatively good financial condition. Pubcos that are acquired are generally not in bad enough shape to file bankruptcy. And remember what MIGHT happen in Chapter 11 filings: most, if not all, of the stock is transferred to the debt holders, as it was done with Halcon. Halcon today, with the debt holder receiving 96% of the stock, is a financially strong company becoming a big player in the new hot shale play in the Permian Basin. The original shareholders and the bond holders got f*cked. Which is exactly what the Chapter 11 bankruptcy law was designed to do. Corporate acquisitions are typically done when the company's stock is undervalued for whatever reason. The acquiring company takes over the debt of that company. Often a much better way to salvage some value for the shareholders then filing Chapter 11.
Remember the feds designed Chapter 11 for the benefit of the corporation and its employees...not necessarily the owners of the corporation.