Articles on Bankruptcy

Organizational Decline: Models and Bankruptcy Prediction

Bankruptcy is rarely a sudden event. It is usually the end result of many years of organizational decline. Experts agree...

Bankruptcy as a Strategy – Part 1

When the word bankruptcy is used, the immediate image conjured is that of a company that is trying hard to...

Bankruptcy as a Strategy – Part 2

In the previous article, we have already studied that all bankruptcies are not involuntary. In many cases, the shareholders and/or...

The Deepening Insolvency Theory

Timing is everything when it comes to bankruptcy claims. Any company facing the threat of bankruptcy has a duty to...

Costs Associated With Bankruptcy

In the previous article, we have studied about how some companies have started using bankruptcy strategically. This means that they...

How does DIP Financing work?

In the business world, Cash is King. Companies that do not have adequate cash cannot survive for very long. This...

Sources of DIP Financing

As mentioned in the previous article, the financing required by companies in order to keep their operations afloat after filing...

The Objectives of Reorganization

After a firm has filed for bankruptcy, the court provides relief against creditors and even further lawsuits. However, this is...

The Disclosure Statement

The disclosure statement is a legal document which every company undergoing bankruptcy in the United States is expected to create...

The Solicitation Process

The disclosure statement is only the first step in the bankruptcy process. After the solicitation statement has been approved by...

The Voting Process

After the solicitation, packages are sent out, and the creditors are given all the information that they need, it is...

Debt to Equity Conversions

Debt to equity conversions is one of the most commonly used tools in the bankruptcy universe. These transactions allow companies...

Bankruptcy is a complex legal process that significantly impacts numerous parties associated with a struggling entity. When a company faces...

Cram Down in Bankruptcy Proceedings

Bankruptcy proceedings are often long drawn processes. The reason behind this is simple. If a company has to come out...

Types of Bankruptcy Frauds

In the previous article, we have learned about how corporations use bankruptcy as a strategic tool. However, it is important...