Re: BeeThinking going out of business
The issue with the bank is risk. If the bank sees the security for the secured loan going to less than the loan, they can push the dissolution button (there are limits and defenses, but I'm not conversant with them). Or they can risk their depositors money and let the operating concern continue to operate on the theory that the business may pull out of bankruptcy back into "going concern" territory. At the 99% threshold, the bank may lose essentially nothing by dissolving the company and forcing liquidation. But the company owners and employees lose big. There is no incentive for the bank to take on risk. If they are under water already and may recover entirely, it becomes their judgement call. So, as I see it, there can be conditions under which a bank may "fail to act benevolently." They have no obligation to benevolence. But they are then not a community bank, with the employees and owners among their depositors. But, oh!, with non-local banks, there is no longer community banking pretty much anywhere. And so "risk aversion" wins.
I'm not saying this is bad. I'm just sharing my observations. I may be wrong. I have a habit that way.
"I thought I made a mistake once, but I was wrong." (heard often from the late David Sebree) Still making them, myself