Who would buy that liability? No, it's far more likely the court would end it there and the business' assets would be sold off and the liabilities are the creditor's problem.
Yes, if they even cover this. My bet is that there this sort of thing isn't covered by a normal warranty or there is a cap on pay-outs.
My house (in ALabama) was built in '07, on a slab, with a wood frame. I have a termite inspection done once a year (and the carpenter bees nuked). Termites are a problem in just about every state. They're not something unique to the South.
...and then they nuke DC. Hey, wait...
There is plenty of precendent for this. Abstestos makers, for instance, went bankrupt, still put into a fund for the victims and then came out.
Thanks. THis is what the engineers who gave the PDH course on steel studs told us. However, they said "won't insure" - are you sure they are insured?
- = - Vasos Panagiotopoulos, Columbia'81+, Reagan, Mozart, Pindus, BioStrategist
These are 3/4 to 1.5 million dollar McMansions for pampered doctor's wives. (and construction costs in LA are cheap compared to other parts of country.) Yeah, I'm pretty sure there is insurance coverage before ground is broken.
They uses wood studs in all load bearing stud walls in the houses around here (SW Florida) and they all get insurance with no problems. The steel studs are only used in partition walls. Termite treatment is required on the dirt under the slabs
No one maybe, but I"m talking about a sale by the court after bankruptcy.
Doesn't the court try to sell the business as a business, in order to get the most money for the previous owner's creditors, and then the new owner has none of the prior liabilities?
You might be right. I was just working with what a previous poster said or implied, that the home warrantees would pay, at least some of it.
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Right. Who would buy the liability? Unless the court strips the liability from the assets no one would buy the assets and *no one* would get paid out of the proceeds.
Right, because no one will buy the liability. If there were enough assets to cover all liabilities, there wouldn't be a bankruptcy. That still leaves the homeowner out in the cold.
Maybe some of it, but to gut a house and restore it they're talking about more money than the house cost to begin with. What insurance is going to cover that? You can get "replacement value" insurance on a home, but it doesn't cover defects.
OTOH, from what I've learned since, steel isn't affected.
Right, and that's why the court would do just that.
You seem new to the thread. The point was not that no one would buy a liability, which no one argues about, or that the homeowner wouldn't be left out in the cold. Sure he would lose money, maybe loads of money.
My point was that the court would sell the business without any of the liabilities attached, because it would get more money than selling it piece by piece. Then a new owner would own the business, and continue to do business. The point was that the business would not close if the court was able to sell it as a business.
Bankruptcy courts sell assets and attempt to pay off debts. They don't sell debts.
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No, actually, you were disagreeing with me (see underlined, above).
The liabilities would go with the assets if there were enough proceeds to make everyone whole, which is unlikely since the business is in bankruptcy to begin with. My point was that no one would buy the assets if the liabilities were still attached. Any way you cut it, the homeowners are stuck with a disaster.
Perhaps the confusion is that homeowner's insurance doesn't cover termite damage. That's true above the Mason Dixon line too.
*+-Perhaps the confusion is that homeowner's insurance doesn't cover termite
*+-damage. That's true above the Mason Dixon line too.Well, these guys were from NYC and the got a contract to build studs for Katrina, so maybe their view of "down south" was limited by what the people they were working with told them.
The other thing is I've seen ads in Structural Engineer for a hybrid steel stud that had pressboard over it.
They told us steel studs cost more but since remnants can be recycled, they turn out net cheaper than wood.
By eye, I'd say about half the buildings I see being built in NYC are steel stud. I hear ads all the time by General, Anthem, and Nucor on the financial radio station for steel buildings. And there is even a Metal Construction trade rag.
- = - Vasos Panagiotopoulos, Columbia'81+, Reagan, Mozart, Pindus, BioStrategist
Maybe, but steel studs are not structural. Maybe the hybrid is, but I wouldn't trust it.
The partitions may use steel studs, the load bearing walls certainly aren't. IIRC, NYC is kinda unique in that they still require BX wiring, so steel studs aren't a big deal.
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