bankruptcy

Examples of bankruptcy in the following topics:

• Corporate Bonds

  • In the event of bankruptcy or liquidation, senior debt must be repaid before any other creditors receive payment.
  • Subordinated debt is repaid after other debts in the case of liquidation or bankruptcy.

• The Lender of Last Resort

  • For example, on September 16, 2008, the Federal Reserve Board authorized an $85 billion loan to stave off the bankruptcy of international insurance giant American International Group (AIG).

• Owners' Equity

  • This definition is helpful in understanding the liquidation process in case of bankruptcy.

• Acculturation problems when buying companies

  • Doing without acculturation strategies not only stunts growth, but also increases the risk of bankruptcy.

• Ethical Issues at an Organizational Level

  • The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world.
  • In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure.

• Executive Compensation

  • An example from the recent financial crisis are the CEOs who led their companies into insolvency and bankruptcy yet were still given huge pay packages .
  • During the financial crisis of 2008, many CEOs led their companies into insolvency and bankruptcy yet were still given huge pay packages.

• Cluster Structure

  • Because a parent company and a subsidiary are separate entities, one of them may be involved in legal proceedings, bankruptcy, tax delinquency, indictment, or under investigation, while the other is not.

• Modern Labor Organizations

  • Some conservatives have blamed the near bankruptcy on unions and their costly labor agreements, including pension and health plans that put the U.S. automakers at a disadvantage to foreign companies.

• Financial Leverage

  • A corporation that borrows too much money might face bankruptcy during a business downturn, while a less-levered corporation might survive.

• Obtaining Credit

  • Credit history or credit report is, in many countries, a negative record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.