m5board.comoholic (>1000 posts)
Join Date: Dec 2014
Thanked 73 Times in 73 Posts
When there is a bankruptcy - that means that the parent hasn't accepted responsibility for the sub's condition. There is receivership, and, even in other countries, this usually involves a plan for recovery. Essentially, the debt holders either get shafted, or in extreme cases they seize the company and sell off the assets. However, there are rules for the order of privilege for creditors - and BMW and its cars that are under the recall would be one of those. I don't know where, internationally, that would fit in the ranking for payment after a bankruptcy.