There are individuals that are appropriately poking holes in some of my assumptions and there are those that fail to read what I am saying.
On those appropriately knocking the assumptions we may disagree but we are probably closer than the surface appears. Unfortunately, because of these subtle and semantic differences a company may/may not decide to declare chapter 11.
I would argue, that this level of depth (and beyond) is being considered by current consultants. I say this from experience having been one of those consultants in the past (nowhere near the pay scale as these guys, I billed out at $125 per hour, but this was over 5 years ago. My take home was a whole bunch less, but this really is a major digression).
This analysis is limited in that I am using it to determine the likely probability that KKD would/would not declare chapter 11. There are other factors, but the main usage of chapter 11 is to get out of certain obligations (not as a shield for lawsuits and other frauds).
To this end, I need to do some additional work relative to the comments presented by di_vur_se_fi as these are particularly germaine to the discussion.
Since it is getting late, I will put this off until tomorrow, but again, I thank him for providing valuable comments as I also thank perspicuator to affirm my thoughts.
For, when it comes right down to it, our mutual goals are to make money, and be you long or short, we are all concerned about our self-interest.