Distress sale

Distress sale

The selling of assets under adverse conditions, e.g., an investor may have to sell securities to cover a margin call.

Distress Sale

A rapid, urgent sale of assets, often at a loss. Distressed sales often occur when cash is needed to cover immediate needs or debts. They are also associated with margin calls. A common example of a distressed sale is the rapid sale of real estate when the owner can no longer make the mortgage payments; he/she must sell the property immediately to pay off the mortgage, even if it involves losing money on the property. See also: Distressed securities.
References in periodicals archive ?
This is a Distress Sale on this open and operating business and price reflects this Sale of Real Estate and Business.
Major onion-producing states, Maharashtra and Madhya Pradesh's farmers have taken to distress sale of the bulb because of higher supply and unsold stock.
All five of their stations were slated for a revocation hearing, but in 2003, the commission relented to allow them to pursue a minority distress sale to Lazer Broadcasting Corporation in 2004.
CAG initiates audit query into the distress sale of 5Boeings by AI at throwaway price
Global Banking News-17 March 2009-Indian companies may resort to distress sale on pressure from banks(C)2009 ENPublishing - http://www.enpublishing.co.uk
Far from a distress sale, the orderly liquidation process, in fact, serried as another model of black wealth building and estate management.
In addition, according to the company a total of 230 of the 1,289 Internet related mergers and acquisitions were the result of bankruptcy or some other 'distress sale'.
Some say the bank transaction was a distress sale ...
This delay often gives the business time to buy out the decedent's interest and avoid a distress sale to outside parties.
Putting the 'sizzle' back in the project by vigorously marketing the auction approach through an effective advertising and public relations effort and a strong direct mail campaign is important so that the property is not considered a "distress sale." In fact, convincing developers and sponsors that the auction process is not a liquidation, but rather an acceleration approach which can achieve fair market value, is still one of the toughest obstacles for auction marketers to overcome.
The Government also implements Price Support Scheme (PSS) and Market Intervention Scheme (MIS) in order to provide remunerative prices to the farmers and avoid distress sale. Assistance is also being provided for construction of scientific warehouses to enhance small and marginal farmers retention capacity and to enable them to avail marketing credit by way of pledge financing and Negotiable Warehouse Receipts System (NWRs).
The move was proposed by the petroleum ministry as it wanted to avoid a distress sale in the stock market.