Originally Posted by
PhoenixDaCat
They really not worth the paper they written on. When a company does them and the auditors provide an audit opinion, it is based on the company contuining as a "going concern", i.e. it will continue to trade for the foreseeable future. This allows banks / suppliers etc to continue to trade with them.
As soon as a supplier believes their customer will not trade into the future, then no credit is available and it will seek to recover all money immediately and any discounts they enjoyed as a major customer cease to exist.............. full price only.
Guess the public message people hear is "Suppliers to Woolworths are unable to obtain credit insurance", hence nobody will supply anything unless they are paid in advance and as was the case with a number of Airlines a couple of years ago the Credit Card companies refused to pay across any money received because of potential claims.
It is a horrible messy business for all concerned and have seen a few.