Technical Bankruptcy

Technical Bankruptcy

The state of a person or company that has defaulted on a liability and lacks the ability to pay it, but has not yet filed for bankruptcy or been declared bankrupt by a court.
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Apparently, NEK is in a state of technical bankruptcy, which is worrying for all of us as investors and Bulgarian citizens," she explained.
This is a technical bankruptcy and it is not anticipated that it will be in place for long as an application for an annulment will be submitted in the next few days.
The entry of Compaq-HP and other manufacturers in the distribution chain and resulting reduced PC prices and margins led Dataflux to technical bankruptcy by 2001, according to the company.
The sublessee argued that this was improper, on a variety of grounds, presenting a mix of technical bankruptcy and landlord-tenant issues.
bg, the measure will achieve three goals, including to balance the system, which is currently plagued by a deficit which cannot be covered with the existing electricity prices, to capitalize the National Electric Company (NEK), which is currently in a state of technical bankruptcy with debts of over BGN 2 B, and to once again reduce electricity prices for household consumers, which were downsized by 4.
He said that although Greece was always being cited as a cautionary tale, the salaries and pensions in the country were 3-4 times higher than those in Bulgaria, regardless of the technical bankruptcy.
More ominously, California's recent decision to re-impose electricity price controls could drive the state's three major utilities into technical bankruptcy next year.
The BDZ company has been in a state of technical bankruptcy for a while, with total debts amounting to BGN 771 M as of October 2011; however, the catalyst for the general strike was the BDZ management plan to layoff 2 000 workers, and stop from operation some 150 trains as part of austerity measures, as well as the government's refusal to sign a new collective labor contract with the workers.

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