Bankruptcy risk


 

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Bankruptcy risk

The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.



Bankruptcy risk

Similar Matches

Bankruptcy view

Bankruptcy view

The argument that expected bankruptcy costs preclude firms from financing entirely with debt.


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.


Bankruptcy cost view

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.


Trustee in bankruptcy

Trustee in bankruptcy

An appointed trustee who supervises and administers the affairs of a bankrupt company or individual.


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'.


Further Suggestions

Bankruptcy charge
Legal bankruptcy
Voluntary bankruptcy
Implicit Bankruptcy Costs
Prepackaged bankruptcy
Bankruptcy


 
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