Tag: liquidation

Reorganization Definition

See Also: Debtor in Possession Financial Distress Costs Insolvency The Reorganization Definition Reorganization is when a bankrupt company restructures its debt obligations without going out of business. During reorganization, the debtor retains ownership of its assets and continues business operations. The debtor then renegotiates the terms of its debt obligations to creditors. If a company

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Liquidation Valuation

See Also: Bankruptcy Information Chapter 11 Bankruptcy Bankruptcy Chapter 12 Chapter 13 Bankruptcy Chapter 7 Bankruptcy Bankruptcy Costs How to Make Dramatic Changes in Business Bankruptcy Courts Liquidation Valuation Definition Liquidation valuation is the value of a company that is bankrupt or going out of business. It is the value of the company’s assets, according

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Debtor in Possession

What is Debtor in Possession? A debtor in possession, or DIP, is a company undergoing a Chapter 11 bankruptcy reorganization. In Chapter 11 bankruptcy, the debtor remains in possession of its assets and continues normal business operations while reorganizing debt obligations and repayment plans. This is in contrast to a Chapter 7 liquidation, in which

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Bankruptcy Information

See Also: Chapter 7 Bankruptcy Chapter 11 Bankruptcy Bankruptcy Code Chapter 13 Bankruptcy Bankruptcy Costs Chapter 12 Bankruptcy Courts – Bankruptcy Bankruptcy is the legal condition of being unable to repay debts. It can apply to individuals or organizations. There are two types of bankruptcy: voluntary and involuntary. Voluntary bankruptcy occurs when the debtor, the party

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Bankruptcy Code

See Also: Chapter 7 Bankruptcy Chapter 11 Bankruptcy Bankruptcy Costs Bankruptcy Courts Chapter 12 Bankruptcy Chapter 13 Bankruptcy Bankruptcy Information Bankruptcy Code Definition U.S. bankruptcy laws are stated in U.S. Code Title 11 also referred to as the Bankruptcy Code. The code consists of several chapters outlining different bankruptcy categories and procedures. Based on the

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Capital Impairment Rule

See Also: Dividends Dividend Payout Ratio Dividend Yield Capital Structure Management Balance Sheet Capital Impairment Rule The capital impairment rule is a state-level legal restriction on corporate dividend policy. The rule applies in most U.S. states. It basically limits the amount of dividends a company can pay out to shareholders. The limit is described as

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5 Cs of Credit (5 Cs of Banking)

See Also: What are the 7 Cs of banking How to Manage Your Banking Relationship Line of Credit Trade Credit Collateralized Debt Obligations 5 Cs of Credit (5 Cs of Banking) The 5 Cs of credit or 5 Cs of banking are a common reference to the major elements of a banker’s analysis when considering

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