Again, the impending demand for future health care will increase the price of health coverage today as well as tomorrow. Increases in demand for a service produces higher costs that must be factored in to a company's future balance sheet. That's simple supply and demand.
And there are plenty of companies who've filed bankruptcy long before they've reached the breaking point. There are any number of advantages to filing bankruptcy as opposed to going under.
dude, there is ALWAYS a demand for health care it never decreases, and there is no such thing as a "future balance sheet" in the sense that a company does one now for the future
the balance sheet is the only statement which applies to a single point in time of a business calendar year, which is usually at the end of a companies financial year
By December 2011 it was reported that Hostess Brands was on the verge of filing for bankruptcy a second time after it suspended payments for union pensions and was struggling to remain current on its $700 million loan.
On January 10, 2012 Hostess Brands filed for Chapter 11 Bankruptcy for the second time. In a statement in its filing, the company said it "is not competitive, primarily due to legacy pension and medical benefit obligations and restrictive work rules." The company said it employs 19,000 people and carries more than $860 million in debt. The company said it would continue to operate with $75 million debtor-in-possession financing from Monarch Alternative Capital, Silver Point Capital and other investors
