28:
535:
1404:
1394:
27:
808:
801:
794:
769:
331:
757:
387:
316:
187:
607:
443:
54:
740:
so as to be able to service its debt. If the latter improvements are insufficient, the company may engage in the more extensive
579:
357:
516:
182:
745:
586:
556:
690:, legal fees, management fees and other payments. Cost of financial distress can occur even if bankruptcy is avoided (
626:
593:
564:
1275:
79:
412:
1188:
732:. If operational issues are the reason for the distress, the company can negotiate a payment holiday with its
575:
560:
382:
1334:
407:
402:
367:
59:
1128:
776:
397:
852:
1245:
1428:
1208:
1379:
1364:
1354:
1193:
1008:
463:
352:
1397:
1374:
1312:
1138:
1063:
1023:
1003:
764:
Predicting
Financial Distress of Companies: Revisiting the Z-Score and Zeta Models by Edward Altman
545:
509:
392:
377:
362:
347:
233:
781:
1108:
1098:
1068:
1038:
978:
549:
490:
480:
433:
321:
259:
110:
89:
600:
1349:
1250:
1113:
951:
921:
223:
1265:
741:
737:
428:
326:
218:
202:
156:
135:
130:
771:
Financial
Distress, Bankruptcy Law, and the Business Cycle by Javier Suarez and Oren Sussman
1287:
1282:
786:
438:
44:
8:
1438:
1433:
1237:
502:
372:
1407:
1319:
1302:
1260:
1183:
1175:
961:
946:
821:
729:
249:
166:
1344:
1339:
1324:
1255:
1198:
1143:
1118:
1088:
1078:
988:
971:
892:
887:
847:
842:
829:
817:
655:
643:
485:
468:
453:
300:
228:
120:
69:
1297:
1292:
1203:
1158:
1058:
956:
877:
862:
837:
295:
264:
161:
125:
762:
1359:
1270:
1223:
1213:
1148:
1073:
1043:
993:
941:
913:
857:
280:
64:
701:
attention and might lead to reduced attention on the operations of the company.
1307:
1218:
782:
Probability of bankruptcy screener for public companies based on Altman Z Score
691:
1422:
926:
713:
197:
678:
A common example of a cost of financial distress is bankruptcy costs. These
1165:
1013:
998:
872:
705:
679:
94:
74:
1123:
1093:
936:
867:
254:
84:
1369:
1329:
1133:
1083:
1053:
931:
698:
659:
474:
49:
19:
1103:
966:
728:
burden is the cause of financial distress, the company can undergo a
647:
192:
534:
1153:
1048:
1033:
733:
290:
151:
115:
704:
Another source of indirect costs of financial distress are higher
983:
683:
651:
448:
882:
816:
746:
Valuation (finance) § Valuation of a suffering company
725:
719:
709:
663:
658:. If financial distress cannot be relieved, it can lead to
285:
687:
662:. Financial distress is usually associated with some
1420:
646:used to indicate a condition when promises to
802:
510:
758:Indicators and Sources of Financial Distress
563:. Unsourced material may be challenged and
1403:
1393:
809:
795:
517:
503:
716:if a state of financial distress occurs.
697:Financial distress in companies requires
627:Learn how and when to remove this message
720:Options for relieving financial distress
1421:
790:
561:adding citations to reliable sources
528:
666:to the company; these are known as
13:
26:
14:
1450:
751:
656:broken or honored with difficulty
1402:
1392:
533:
1189:Debtor-in-possession financing
1:
1129:Staggered board of directors
7:
1246:Accretion/dilution analysis
668:costs of financial distress
10:
1455:
1209:Leveraged recapitalization
777:Insolvency Service website
1388:
1380:Valuation using multiples
1365:Sum-of-the-parts analysis
1335:Modigliani–Miller theorem
1236:
1194:Dividend recapitalization
1174:
1022:
1009:Secondary market offering
912:
901:
828:
464:History of bankruptcy law
1398:List of investment banks
1313:Free cash flow to equity
1139:Super-majority amendment
1064:Management due diligence
1004:Seasoned equity offering
234:Voidable floating charge
1109:Shareholder rights plan
1099:Post-merger integration
1069:Managerial entrenchment
1039:Contingent value rights
979:Initial public offering
673:
481:Pre-packaged insolvency
434:Bankruptcy alternatives
322:Cross-border insolvency
260:Trading while insolvent
111:Insolvency practitioner
90:Provisional liquidation
1251:Adjusted present value
1114:Special-purpose entity
952:Direct public offering
922:At-the-market offering
738:operational efficiency
224:Undervalue transaction
31:
1266:Conglomerate discount
742:turnaround management
429:Anti-deprivation rule
327:Insolvency Regulation
219:Fraudulent conveyance
203:Scheme of arrangement
157:Preferential creditor
136:Trustee in bankruptcy
131:Referee in Bankruptcy
30:
1288:Economic value added
1283:Discounted cash flow
576:"Financial distress"
557:improve this article
873:Senior secured debt
183:Administration (UK)
1408:Outline of finance
1320:Market value added
1303:Financial modeling
1261:Business valuation
1184:Debt restructuring
962:Follow-on offering
947:Corporate spin-off
905:(terms/conditions)
822:investment banking
736:, while improving
730:debt restructuring
640:Financial distress
459:Financial distress
332:UNCITRAL Model Law
250:Fraudulent trading
167:Unsecured creditor
32:
1429:Corporate finance
1416:
1415:
1340:Net present value
1325:Minority interest
1256:Associate company
1232:
1231:
1199:Financial sponsor
1119:Special situation
1089:Pre-emption right
1079:Minority discount
989:Private placement
888:Subordinated debt
843:Exchangeable debt
830:Capital structure
818:Corporate finance
644:corporate finance
637:
636:
629:
611:
527:
526:
486:Sovereign default
469:List of bankrupts
439:Creditors' rights
301:Security interest
229:Unfair preference
211:Avoidance regimes
121:Regulatory agency
1446:
1406:
1405:
1396:
1395:
1298:Fairness opinion
1293:Enterprise value
1276:Weighted average
1204:Leveraged buyout
1059:Drag-along right
957:Equity carve-out
914:Equity offerings
910:
909:
906:
878:Shareholder loan
863:Second lien debt
858:Preferred equity
838:Convertible debt
811:
804:
797:
788:
787:
748:for discussion.
706:costs of capital
632:
625:
621:
618:
612:
610:
569:
537:
529:
519:
512:
505:
296:Second lien loan
265:Wrongful trading
162:Secured creditor
16:
15:
1454:
1453:
1449:
1448:
1447:
1445:
1444:
1443:
1419:
1418:
1417:
1412:
1384:
1360:Stock valuation
1355:Residual income
1271:Cost of capital
1228:
1224:Project finance
1214:High-yield debt
1170:
1149:Tag-along right
1074:Mandatory offer
1044:Control premium
1025:
1018:
994:Public offering
942:Bought out deal
904:
903:
897:
824:
815:
754:
722:
676:
633:
622:
616:
613:
570:
568:
554:
538:
523:
317:Chapter 15 (US)
281:Floating charge
188:Chapter 11 (US)
65:Conservatorship
12:
11:
5:
1452:
1442:
1441:
1436:
1431:
1414:
1413:
1411:
1410:
1400:
1389:
1386:
1385:
1383:
1382:
1377:
1375:Terminal value
1372:
1367:
1362:
1357:
1352:
1347:
1342:
1337:
1332:
1327:
1322:
1317:
1316:
1315:
1308:Free cash flow
1305:
1300:
1295:
1290:
1285:
1280:
1279:
1278:
1268:
1263:
1258:
1253:
1248:
1242:
1240:
1234:
1233:
1230:
1229:
1227:
1226:
1221:
1219:Private equity
1216:
1211:
1206:
1201:
1196:
1191:
1186:
1180:
1178:
1172:
1171:
1169:
1168:
1163:
1162:
1161:
1151:
1146:
1141:
1136:
1131:
1126:
1121:
1116:
1111:
1106:
1101:
1096:
1091:
1086:
1081:
1076:
1071:
1066:
1061:
1056:
1051:
1046:
1041:
1036:
1030:
1028:
1020:
1019:
1017:
1016:
1011:
1006:
1001:
996:
991:
986:
981:
976:
975:
974:
964:
959:
954:
949:
944:
939:
934:
929:
924:
918:
916:
907:
899:
898:
896:
895:
890:
885:
880:
875:
870:
865:
860:
855:
850:
848:Mezzanine debt
845:
840:
834:
832:
826:
825:
814:
813:
806:
799:
791:
785:
784:
779:
774:
767:
760:
753:
752:External links
750:
721:
718:
714:interest rates
692:indirect costs
675:
672:
635:
634:
541:
539:
532:
525:
524:
522:
521:
514:
507:
499:
496:
495:
494:
493:
488:
483:
478:
471:
466:
461:
456:
451:
446:
444:Chapter 9 (US)
441:
436:
431:
423:
422:
418:
417:
416:
415:
410:
408:United Kingdom
405:
400:
395:
390:
385:
380:
375:
370:
365:
360:
355:
350:
342:
341:
337:
336:
335:
334:
329:
324:
319:
311:
310:
306:
305:
304:
303:
298:
293:
288:
283:
275:
274:
270:
269:
268:
267:
262:
257:
252:
244:
243:
239:
238:
237:
236:
231:
226:
221:
213:
212:
208:
207:
206:
205:
200:
195:
190:
185:
177:
176:
172:
171:
170:
169:
164:
159:
154:
146:
145:
141:
140:
139:
138:
133:
128:
123:
118:
113:
105:
104:
100:
99:
98:
97:
92:
87:
82:
77:
72:
67:
62:
57:
55:Chapter 7 (US)
52:
47:
45:Administration
39:
38:
34:
33:
23:
22:
9:
6:
4:
3:
2:
1451:
1440:
1437:
1435:
1432:
1430:
1427:
1426:
1424:
1409:
1401:
1399:
1391:
1390:
1387:
1381:
1378:
1376:
1373:
1371:
1368:
1366:
1363:
1361:
1358:
1356:
1353:
1351:
1348:
1346:
1343:
1341:
1338:
1336:
1333:
1331:
1328:
1326:
1323:
1321:
1318:
1314:
1311:
1310:
1309:
1306:
1304:
1301:
1299:
1296:
1294:
1291:
1289:
1286:
1284:
1281:
1277:
1274:
1273:
1272:
1269:
1267:
1264:
1262:
1259:
1257:
1254:
1252:
1249:
1247:
1244:
1243:
1241:
1239:
1235:
1225:
1222:
1220:
1217:
1215:
1212:
1210:
1207:
1205:
1202:
1200:
1197:
1195:
1192:
1190:
1187:
1185:
1182:
1181:
1179:
1177:
1173:
1167:
1164:
1160:
1157:
1156:
1155:
1152:
1150:
1147:
1145:
1142:
1140:
1137:
1135:
1132:
1130:
1127:
1125:
1122:
1120:
1117:
1115:
1112:
1110:
1107:
1105:
1102:
1100:
1097:
1095:
1092:
1090:
1087:
1085:
1082:
1080:
1077:
1075:
1072:
1070:
1067:
1065:
1062:
1060:
1057:
1055:
1052:
1050:
1047:
1045:
1042:
1040:
1037:
1035:
1032:
1031:
1029:
1027:
1021:
1015:
1012:
1010:
1007:
1005:
1002:
1000:
997:
995:
992:
990:
987:
985:
982:
980:
977:
973:
970:
969:
968:
965:
963:
960:
958:
955:
953:
950:
948:
945:
943:
940:
938:
935:
933:
930:
928:
927:Book building
925:
923:
920:
919:
917:
915:
911:
908:
900:
894:
891:
889:
886:
884:
881:
879:
876:
874:
871:
869:
866:
864:
861:
859:
856:
854:
851:
849:
846:
844:
841:
839:
836:
835:
833:
831:
827:
823:
819:
812:
807:
805:
800:
798:
793:
792:
789:
783:
780:
778:
775:
773:
772:
768:
766:
765:
761:
759:
756:
755:
749:
747:
743:
739:
735:
731:
727:
717:
715:
712:increase the
711:
707:
702:
700:
695:
693:
689:
685:
681:
671:
669:
665:
661:
657:
653:
649:
645:
642:is a term in
641:
631:
628:
620:
617:February 2021
609:
606:
602:
599:
595:
592:
588:
585:
581:
578: –
577:
573:
572:Find sources:
566:
562:
558:
552:
551:
547:
542:This article
540:
536:
531:
530:
520:
515:
513:
508:
506:
501:
500:
498:
497:
492:
491:Subordination
489:
487:
484:
482:
479:
477:
476:
472:
470:
467:
465:
462:
460:
457:
455:
452:
450:
447:
445:
442:
440:
437:
435:
432:
430:
427:
426:
425:
424:
420:
419:
414:
413:United States
411:
409:
406:
404:
401:
399:
396:
394:
391:
389:
386:
384:
381:
379:
376:
374:
371:
369:
366:
364:
361:
359:
356:
354:
351:
349:
346:
345:
344:
343:
339:
338:
333:
330:
328:
325:
323:
320:
318:
315:
314:
313:
312:
309:International
308:
307:
302:
299:
297:
294:
292:
289:
287:
284:
282:
279:
278:
277:
276:
272:
271:
266:
263:
261:
258:
256:
253:
251:
248:
247:
246:
245:
241:
240:
235:
232:
230:
227:
225:
222:
220:
217:
216:
215:
214:
210:
209:
204:
201:
199:
198:Restructuring
196:
194:
191:
189:
186:
184:
181:
180:
179:
178:
175:Restructuring
174:
173:
168:
165:
163:
160:
158:
155:
153:
150:
149:
148:
147:
143:
142:
137:
134:
132:
129:
127:
124:
122:
119:
117:
114:
112:
109:
108:
107:
106:
102:
101:
96:
93:
91:
88:
86:
83:
81:
78:
76:
73:
71:
68:
66:
63:
61:
58:
56:
53:
51:
48:
46:
43:
42:
41:
40:
36:
35:
29:
25:
24:
21:
18:
17:
1350:Real options
1166:Tender offer
1026:acquisitions
1014:Underwriting
999:Rights issue
902:Transactions
770:
763:
723:
703:
696:
680:direct costs
677:
667:
639:
638:
623:
614:
604:
597:
590:
583:
571:
555:Please help
543:
473:
458:
398:South Africa
95:Receivership
75:Examinership
1124:Squeeze-out
1094:Proxy fight
1024:Mergers and
937:Bought deal
868:Senior debt
708:as usually
403:Switzerland
255:Misfeasance
85:Liquidation
70:Dissolution
1439:Insolvency
1434:Bankruptcy
1423:Categories
1370:Tax shield
1330:Mismarking
1134:Stock swap
1084:Pitch book
1054:Divestment
932:Bookrunner
853:Pari passu
699:management
660:bankruptcy
587:newspapers
475:Pari passu
340:By country
126:Liquidator
50:Bankruptcy
20:Insolvency
1345:Pure play
1238:Valuation
1104:Sell side
967:Greenshoe
734:creditors
648:creditors
544:does not
378:Hong Kong
353:Australia
193:Cram down
144:Claimants
103:Officials
37:Processes
1176:Leverage
1154:Takeover
1049:Demerger
1034:Buy side
724:If high
684:auditors
682:include
348:Anguilla
291:Mortgage
273:Security
242:Offences
152:Creditor
116:Tribunal
1159:Reverse
1144:Synergy
984:Pre-IPO
972:Reverse
893:Warrant
652:company
601:scholar
565:removed
550:sources
454:Default
388:Ireland
744:. See
603:
596:
589:
582:
574:
449:Debtor
393:Russia
368:Cayman
363:Canada
883:Stock
710:banks
664:costs
650:of a
608:JSTOR
594:books
421:Other
383:India
373:China
820:and
726:debt
688:fees
674:Cost
654:are
580:news
548:any
546:cite
286:Lien
694:).
559:by
358:BVI
80:IVA
60:CVA
1425::
686:'
670:.
810:e
803:t
796:v
630:)
624:(
619:)
615:(
605:·
598:·
591:·
584:·
567:.
553:.
518:e
511:t
504:v
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
_(style_of)_-_A_Hand_Holding_an_Empty_Purse,_The_Emblem_of,_%E2%80%98No_suffering_can_compare%27_(with_that_of_the_bankrupt_spendthrift)_-_1298194_-_National_Trust.jpg){kind=spacer}