Articles on Bankruptcy

The Stages of Descent into Bankruptcy

Bankruptcy is a common phenomenon in the business world. There have been many cases wherein the stalwarts of yesterday, the...

The Conceptual View of Organizational Decline

The bankruptcy of an organization is the end result of many years of organizational decline. It is not an event...

External Causes of Organization Decline

Many theorists believe that organizational decay is caused by external factors. In fact, some have gone far enough to suggest...

Internal Causes of Organization Decline

External causes are considered to be the number one reason behind the organizational decline. However, they do not work in...

Predicting Bankruptcy in Organizations

Bankruptcy is a state in which firms are not able to meet their obligations to internal as well as external...

Shortcomings of the Bankruptcy Prediction Models

In the previous article, we have studied how bankruptcy prediction models have come a long way. It is true that...

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...

How Bankruptcy Affects Personnel Contracts

When a firm declares bankruptcy, this decision has an impact on all the contracts signed by the firm. The law...

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...

What Different Stakeholders want from a Bankruptcy?

When a company files for bankruptcy, the interests of many different parties are impacted. This is the reason that bankruptcy...

Dealing With Special Claims during Bankruptcy

The bankruptcy process takes a long period of time to resolve. During this time frame, the company takes the protection...

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...

Sale of Assets during Bankruptcy

When a company is facing bankruptcy, it tries to free up as much capital as possible. This freed up capital...

Debt to Equity Conversions

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

The Impact of Bankruptcy on Shareholders

Companies that file for bankruptcy also have a capital structure just like normal companies. This means that their capital structure...

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...

How a Cram Up Works in Bankruptcy?

In most bankruptcy cases, senior classes of creditors have more power as compared to junior classes of creditors. This means...

The World without Bankruptcy Laws

Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks....

Types of Bankruptcy Frauds

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

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Articles on Bankruptcy