Bankruptcy risk

(redirected from Insolvency 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 ?
Assets funded through the vehicle are isolated from the bankruptcy or insolvency risks of the entities involved in the program.
Dhaman provides an inclusive insurance coverage to factoring companies against insolvency risks and against the risks resulting from accepting and financing commercial invoices issued by the factoring companies' clients for a buyers' interest with credit facilities in the local or global market.
Restaurants tend to have one of the highest insolvency risks of the sectors tracked.
The transport and haulage sector in the North East also fared well, recording the lowest rate of insolvency risks in any of the UK's 12 regions for the sixth consecutive month.
To escape the fall, financial experts have to uncover insolvency risks and issue early warnings to signal elevated default threats.
Following which, the solicitor can advise the lender of any insolvency risks of lending money.
Our results indicate that the managerial decision to purchase property insurance is positively related to company size and insolvency risks.
Through a comprehensive range of insurance, financing and credit-management products, the SACE Group can guarantee more stable cash flows, thereby transforming counterpart insolvency risks into development opportunities.
Assets funded through the vehicles are isolated from the bankruptcy or insolvency risks of the entities involved in the program.
An additional $2 billion was spent by European companies purchasing "domestic" credit insurance coverage against insolvency risks in trading in their own country--a product which is not usually purchased by most companies trading outside Europe.
The rating reflects the credit quality of the underlying receivables, the capability of the Dragados group of companies as originator and servicer, as well as the credit support that dynamically adjusts on a monthly basis to provide for a stressed level of historical portfolio losses, dilutions, transaction carrying costs, and commingling and other originators' insolvency risks.