Bankruptcy risk

(redirected from Bankruptcy Risks)

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

The risk that an individual or especially a company may be unable to service its debts. Bankruptcy risk is greater when the individual or firm has little or no cash flow, or when it manages its assets poorly. Banks assess bankruptcy risk when considering whether to make a loan. It is also called insolvency risk.
Mentioned in ?
References in periodicals archive ?
Factors considered include high risk events, revenue and expense recognition methods, SEC actions, and bankruptcy risks.
A company is typically known as a ' going concern' if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks.
If LDK goes bankrupt, it will indicate significant bankruptcy risks for other Chinese solar companies and could significantly shake investors' confidence in Chinese solar companies," Gordon Johnson, analyst with Axiom Capital Management, said in a note to investors.
A buyer that engages in a purchase of assets with a distressed company outside of bankruptcy risks that creditors in a subsequent bankruptcy will claim that the amount paid for the assets was too low.
However, Teikoku Databank warned many small and midsize firms, hounded by slumping revenues and debts, still face bankruptcy risks, as foreign economies that have been destinations for Japanese exports are slowing, with the yen's strength undercutting exporters.
what bankruptcy risks are raised or reduced by entering into the workout.
airlines enter the fall with growing expectations that still-tentative signs of stabilization in revenue trends over the last several weeks may pave the way for modest improvement in credit fundamentals and reduced bankruptcy risks moving into 2010.
NEW YORK, May 16, 2012 /PRNewswire/ -- Madlyn Primoff, a partner in Kaye Scholer's Bankruptcy & Restructuring Practice today released her outlook on bankruptcy risks facing various industries in the U.
Share prices on the Tokyo Stock Exchange plunged Monday, pushing the benchmark Nikkei Stock Average down 3%, as the market remained cautious about bankruptcy risks despite hopes for positive effects from the weekend birth of a daughter to Crown Prince Naruhito and Princess Masako.
Featuring partners and chairs from some of the nation's leading firms, these experts guide the reader through the intricacies of protecting clients from bankruptcy risks and discuss options for companies who are in financial distress.
Among the topics covered in the book are the strategic use of involuntary bankruptcy petitions; bankruptcy-proofing the debtor corporation; segmenting loans, and using interest rate swaps, to enhance the return on loans post- petition; and using co-signers and guarantors to minimize bankruptcy risks and enhance the likelihood of repayment.
Tokyo stocks slid Monday as the central bank downgraded its view on the Japanese economy, but the bleak economic prospects sent rail operators and utilities sharply higher as investors shifted funds to firms with the least bankruptcy risks.