Normally, businesses routinely go bankrupt — driven mainly by wrong financial decisions or a host of uncontrolled factors such as environmental, macroeconomic, etc. And there is a well-defined process in place (under a legal framework) to deal with it. Hence, common sense tells us that for VI as well we should let this process play out, so as to prevent getting into dealing with a situation of “moral hazard”, thereby ending up setting a wrong precedent — motivating other companies from behaving responsibly. So what is so special about VI? Should it deserve to get special treatment? If yes, why? Let’s find out.
The answers to these questions are embedded in our past actions, for that, we have to dive into history and introspect about the cause that led us to this situation. The other metric to weigh is if no such bailout is granted what are the pitfalls and whether we will end up damaging the foundation of our digital economy irreparably? The details of the impact are listed in my earlier note — “The Collateral Damage of VI going out of business”.
