PPT-Chapter 26 Bankruptcy, Workouts, and Corporate Reorganization

Chapter 26 Bankruptcy Workouts and Corporate Reorganization Chapter Outline 261 Introduction 262 What is Financial Distress and Failure 263 Voluntary Restructuring and Corporate Focus 264 Bankruptcy. Chapter 11 Bankruptcy is the process created by the United States Bankruptcy Code to preserve the going concern value of operating businesses and to allow for a decision to be made by company’s creditors and equity holders or the Bankruptcy Court (if agreement cannot be reached) as to how such going concern value will be shared, distributed or reallocated. or A bankruptcy case concerning the debtors list ed below was originally filed under chapteron date and was converted to a case under chapter 11 ondate You may be a creditor of the debtor This notice lists im portant deadlines You may want to consu VOCAB. . Bankrupt. – a person or company with insufficient assets to cover their debt. Bankruptcy . – a state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets. A court’s determination of personal bankruptcy remains in a consumer’s credit record for 10 years.. Succession Planning and Strategies for Harvesting and Ending the Venture. McGraw-Hill/Irwin. Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. .. Learning Objectives. To understand the planning that is necessary to allow for the effective succession of ownership or leadership in a business. Bankruptcy, Reorganization, and Liquidation. 2. Topics in Chapter. Financial distress process. Federal bankruptcy law. Reorganization. Liquidation. 3. What are the major causes. of business failure?. Accounting . for. Legal . Reorganizations. . and . Liquidations. Copyright © 2015 . McGraw-Hill . Education.. . All . rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Accounting . for. Legal . Reorganizations. . and . Liquidations. Copyright © 2015 . McGraw-Hill . Education.. . All . rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Appendix. 15B. Financial Reorganization. Kieso. • . Weygandt. • Warfield • Young • . Wiecek. • . McConomy. Financial Reorganization. Process where a company that has undergone financial difficulties can reorganize its finances without having to recover a deficit. Mahesh . Uttamchandani. Law Justice and Development Week 2011. November 16, 2011. NPLs in many countries are high and rising. 2. Non-Performing Loans/Total Loans in percent. Source: IMF Global Financial Stability Report. OCAPL, Monday, Nov. 2, 2015 . Melissa R. Gardner. Attorney. Phillips . Murrah. , PC. mrgardner@phillipsmurrah.com. Types of Bankruptcy. Chapter 7. Chapter 11. Trustee appointed to replace management in. Bankruptcy. Sometimes people and businesses through . no fault of their own . accumulate so much debt, they can . no longer afford to repay it. .. Businesses: suffer from bad economy. Individual: credit debt, illness, loss of job. by. Nick . Sushkov. . Questions to Generate Discussion. . What is bankruptcy?. Bankruptcy is a federal court process that can help one eliminate legal responsibility for many of one’s debts or repay them over time under the protection of the bankruptcy court.. Prof. C. Scott Pryor. Fulbright-Nehru Research Scholar at. National Law University, Delhi. Professor of Law at. Campbell University School of Law, Raleigh, NC, USA. Insolvency Professional Agency . of. The Bankruptcy Code defines “consumer debt” as debt incurred by an individual primarily for a personal, family, or household purpose. 11 . U.S.C. . § 101(8). . Not business debt.. Can be chapter 7, 11, 12, or13 .