Going going gone, page-464

I think you're raising a valid point Lakota, but is probably more about Australia's insolvency laws than anything else.

There's more flexibility in the US system where chapter 11 re-organisations are available. It can give the company protection against creditors - even secured creditors like the banks.

What happened to DSH doesn't seem to happen so much in the US.
DSH had problems with its management and business model, and needed more cash which the banks weren't prepared to put up, but a chapter 11 process might have given options to fix the business and carry on.

One issue is employment law in Aus - often in the US, employees have to take a haircut along with other creditors in Chapter 11 situation.

In Oz, if the directors believe the company doesn't have enough cash to pay its bills, they usually have to do a VA. If there are secured creditors then the VA almost always just becomes a receivership. And that's it.