Friday, August 3, 2012

Knight Considering Bankruptcy, Looking At 363 Asset Sale ...

This may be it. Via Fox News:

  • VIRTU OUT OF BIDDING FOR KNIGHT CAPITAL
  • KNIGHT?S JOYCE CONSIDERING BANKRUPTCY REORGANIZATION
  • KNIGHT LOOKING AT ?363? REORGANIZATION TO SELL ASSETS
  • KNIGHT LOOKING TO EMERGE AS VIABLE COMPANY

363 Asset sale? This is what we said earlier when we reported on the rumors of a sale to Virtu: "Will it happen? Maybe. Although we doubt it - why pay for equity value when one can pick up the functioning assets in a Chapter 363 asset sale which also sticks the creditors with all the crappy assets?" Sure enough. Sadly, what this means for the company 1,500 employees is that about 80% them will be out of a job due to an algo gone wild. And to then we have been warning about the impact of HFT for the past 3 years.

Perhaps now that people's livelihoods are about to destroyed even the porn-addicts at the SEC will finally take this matter seriously.

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Source: http://www.zerohedge.com/news/knight-considering-bankruptcy-looking-363-asset-sale

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