Technical Bankruptcy

Technical Bankruptcy

The state of a company or person who has defaulted on a financial obligation and would be declared bankruptcy if the creditor makes a claim through the courts.

Notes:

In other words, a company or person experiencing technical bankruptcy shows all the signs of bankruptcy, but just hasn't been declared bankrupt by the courts.

See also: Absolute Priority, Bankruptcy, Bond, Chapter 11, Chapter 7, Discharge in Bankruptcy, Prepackaged Bankruptcy, Senior Security, Stalking Horse Bid, Stockholders Equity, Vulture Fund