I can’t get this out of my head. It shouldn’t be taken seriously.

There’s a part of the US Bankruptcy Code that provides for involuntary bankruptcies. At a high level, three creditors holding liquidated, non-contingent unsecured claims exceeding $10,000 can put a company into bankruptcy. Even a big one.

It would be disruptive but not fatal. It would probably also cause the publicly-traded stock to crash, which would be a problem for a founder of the company with significant margin debt.

The stock might not have a chance to crash. It’s not weird in pubco bankruptcies for the court to suspend trading to avoid an inadvertent change in control that would jeopardize valuable NOL carryforwards. Even so, I suspect (though I don’t know) that a suspension of trading of stock collateral would trigger a default under the related credit agreements.

Anyway, wild to think about. Just three creditors.