Printer Friendly
The Free Dictionary
1,016,127,880 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Bankruptcy Risk

    0.06 sec.
Bankruptcy Risk
The risk that a company will be unable to meet its debt obligations. Often referred to as "default" or "insolvency risk".

Notes:
This is a risk that both equity- and bondholders take when deciding to invest in a company. Aside from looking at overall profitability, analyzing a company's debt obligations and ability to repay, agencies like Moody's and Standard & Poor's attempt to determine this risk by giving bond ratings.


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

?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
In order to deal with the bankruptcy risk inherent in a transaction with multiple borrowers, rating agency guidelines provide that (i) each borrower/tenant should be a bankruptcy remote special purpose entity, and (ii) non-consolidation opinions should be provided for each tenant in common.
He helps clients with business planning and in connection with structuring transactions to minimize bankruptcy risk, especially technology transactions and transactions with critical vendors.
High-debt firms face higher (known) bankruptcy risk, which is ameliorated by debt non-disclosure.
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a. Terms of Use.