I can't imagine what a bankruptcy process would look like for a public entity as large as California.
Putting aside the legal reality for the moment, in theory if the state could and did declare bankruptcy, wouldn't CA need to sell off assets to its creditors in order to pay down some of the outstanding debt before it could proceed with a debt restructuring plan? Couldn't we end up with a scenario where another state who purchased CA debt (if there are any) ends up owning CA state parks, port authorities, schools, and other state-owned policies? How might that go down?
I know it's not realistic, but now I'm curious as to what it would look like...
I can't imagine what a bankruptcy process would look like for a public entity as large as California.
Putting aside the legal reality for the moment, in theory if the state could and did declare bankruptcy, wouldn't CA need to sell off assets to its creditors in order to pay down some of the outstanding debt before it could proceed with a debt restructuring plan? Couldn't we end up with a scenario where another state who purchased CA debt (if there are any) ends up owning CA state parks, port authorities, schools, and other state-owned policies? How might that go down?
I know it's not realistic, but now I'm curious as to what it would look like...