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This is known as business turnaround or business recovery. Implementing a business turnaround may take many forms, including keep and restructure, sale as a going concern, or wind-down and exit. In some jurisdictions, it is an offence under the insolvency laws for a corporation to continue in business while insolvent.
Liquidation is the process in accounting by which a company is brought to an end. The assets and property of the business are redistributed. The assets and property of the business are redistributed. When a firm has been liquidated, it is sometimes referred to as wound-up or dissolved , although dissolution technically refers to the last stage ...
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whether organized as a corporation, partnership or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. [1]
Poor financial planning: Lack of budgeting or inadequate financial management. Reduced income : A decrease in income, such as from loss of employment, reduced business profits or other factors.
The main face of the bankruptcy process is the insolvency officer (trustee in bankruptcy, bankruptcy manager). At various stages of bankruptcy, he must be determined: the temporary officer in monitoring procedure, external manager in external control, the receiver or administrative officer in the economic recovery, the liquidator.
This work is usually initiated at the behest of the directors of the company and is normally undertaken by licensed insolvency practitioners. Corporate recovery generally involves certain steps to achieve financial stability, such as asset liquidation, divestment, product elimination, layoffs, and operational efficiency improvements. [1]
Receiverships relating to insolvency are subdivided into two further categories: administrative/equity receivership, where the receiver is granted wide management powers over all or most of the property of a business, and other receiverships (sometimes misleadingly called fixed charge receiverships) where the receiver has limited control over ...
Provisional liquidation is a process which exists as part of the corporate insolvency laws of a number of common law jurisdictions whereby after the lodging of a petition for the winding-up of a company by the court, but before the court hears and determines the petition, the court may appoint a liquidator on a "provisional" basis. [1]