Bankruptcy cost view

 

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Bankruptcy cost view

The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% leverage financing.



Bankruptcy cost view

Similar Matches

Prepackaged bankruptcy

Prepackaged bankruptcy

A bankruptcy in which a debtor and its creditors pre-negotiate a plan of reorganization and then file it along with the bankruptcy petition.


Implicit Bankruptcy Costs

Implicit Bankruptcy Costs

Opportunity costs incurred prior to the bankruptcy process such as the loss of sales or financing.


Bankruptcy

Bankruptcy

A situation where an individual is incapable of settling his/her debts and has been served a bankruptcy order by a court.The petition can either be filed by the individual concerned, or by his/her creditors. An inquiry into the debtor's affairs is made by the Official Receiver and the debtor's assets are realised and distributed among creditors.Personal pension assets are not included under the bankrupt's distributable assets for petitions made after May 29, 2000, unless the bankrupt has deliberately put assets into a personal pension specifically to avoid paying creditors. Money in occupational pensions schemes is also excluded.The equivalent process for companies is 'liquidation'.


Legal bankruptcy

Legal bankruptcy

A legal proceeding for liquidating or reorganizing a business.


Trustee In Bankruptcy

Trustee In Bankruptcy

One appointed by a bankruptcy court, and in whom the property of the bankrupt vests. The trustee holds the property in trust, not for the bankrupt, but for the creditors.


Further Suggestions

Bankruptcy charge
Trustee in bankruptcy
Bankruptcy risk
Voluntary bankruptcy
Bankruptcy
Bankruptcy view


 
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