Financial distress


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Financial distress

Events preceding and including bankruptcy, such as violation of loan contracts.

Financial Distress

A stage before bankruptcy where a company's creditors are not being paid or are paid with significant difficulty. While a company can avoid moving from financial distress to bankruptcy, it can be very difficult. Often, financial distress can come with its own costs, such as fees paid to lawyers or the costs of extra interest for late payments. See also: Costs of financial distress.
References in periodicals archive ?
Soon after they enroll in college, many Black and Hispanic students are falling into financial distress, according to a new study tracking more than 500 students at five Illinois universities.
The seminar will discuss financial distress in terms of its importance, definition, concepts, terminology, stages, causes and treatment methods and procedures of financial distress, as well as the importance of performance and financial control and how to manage them.
THE number of Scottish firms showing signs of financial distress rose by 15 per cent in the first quarter of 2014 compared with last year - the lowest figure of any UK region.
CARDIFF has enjoyed a 22% year-on-year decline in the number of businesses experiencing critical financial distress during the first three months of 2014, according to research.
Breaking down the sectors in Wales, financial services and construction have struggled, posting respective quarterly increases in critical financial distress of 100% and 44%.
DEAR Editor, You carried an article on February 21 (Region's rural businesses in most financial distress) which cited Much Wenlock in Shropshire as suffering financial distress with no less than 18 per cent of firms in poor financial health.
KARACHI -- Two former Pakistan Test cricketers Shahid Nazir and Fazle Akbar and ex-first class cricketer Sajid Shah, who nearly donned national cap, are under financial distress.
Overall, the UK saw a 12% decline in the level of "significant" or "critical" financial distress - from 223,125 in the third quarter of 2012 to 196,636 in the fourth quarter.
We find that firms in financial distress use a significantly larger amount of trade credit to substitute for alternative sources of financing.
This research investigates the ability of cash flow composition to predict the incidence of financial distress.
Over 127,000 companies nationally experienced "significant" or "critical" financial distress in Q2 2010, and between them owed over pounds 69.

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