Series 79: Chapter 14

Taken from our Series 79 Top-off Online Guide

Chapter 14

Financial Restructuring and Bankruptcy

A financially distressed company that cannot pay its obligations on time faces a limited and unappealing set of options. If the company has indulgent creditors and legitimate prospects for generating cash, it may be able to negotiate a workout plan. It may retain a turnaround advisor to boost the viability of the business. Or the company may file for bankruptcy.

There are two primary types of business bankruptcies: Chapter 7 and Chapter 11. (The names refer to the applicable chapter of the Bankruptcy Code.) In a Chapter 7 bankruptcy, a compan

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