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Cherry Picking before bunkrupcty?
Posted: April 10th, 2006, 7:20 am
by helgus1
Hi,what exactly mean the "cherry picking" according to a company that is going to bust?rgds,Matt
Cherry Picking before bunkrupcty?
Posted: April 10th, 2006, 2:35 pm
by danturner999
It means they pick which contracts to honour...i.e. Bank A has 2 contracts with Bank B, on one of them they are making money and on the other they are losing.If Bank A then goes bankrupt, they 'cherry pick' the contract on which they are making money and force Bank B to honour it... they however, chose not to honour the other contract in which they are losing.Bank B has no choice but to honour the payment or they themselves will be called into default.Hope that helps.
Cherry Picking before bunkrupcty?
Posted: April 10th, 2006, 3:32 pm
by helgus1
Yep, that helps.I was considering exectly something like this.thanks