On: Trucking startup Convoy closes operations with no ...

[jahewson]

I get your point but to free up cash for the employees he’d have to bail out all the other creditors first. Not a good precedent to set.

[nilram → jahewson]

Under US bankruptcy law, cash first goes to employees, then creditors (including contractors), then owners.

[pests → nilram]

Yep, that is how the law works. In this case cash is going to the creditors. Employees aren't owed anything, then the next in line are the creditors.