An attorney for a CSA plaintif told his client that it would be wise to take the settlement offer. In discovery, his firm decided that WTC could not last 3 years before chap 11. That was roughly 1 year ago.
Since then, WTC has shifted it's position on adjudicating in courtroom venues. It now desires to settle out of court with negotiating tactics and a tight NDA. So what changed?
They were losing cases - almost every case they fought. Why? Plaintifs attorneys had a large amount of harmful evidence that swayed juries and judges. What did WTC do? WTC hired the same legal firm that represented US Catholic dioceses. Why is this significant? All the dioceses they represented declared chap 11. That firm immediately told WTC to stop wasting resources in court battles. Their solution for the dioceses was to protect assets by filing chap 11. Chap 11 is closer than ever as WTC aligns their assets to prepare. Like the dioceses, they know that chap 11 is not the end if they can limit the bad PR among the R&F.
So back to the original OP question. Is WTC broke? Not exactly, but they can see themselves being broke if they don't seek debt protection soon. CSA cases are still flooding in, and a new batch of hybrid CSA cases is forming in PA. Reports from inside Warwick are not flattering as the intensity of CSA cases intensifies.