Business Failure

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Unformatted text preview: ew capital Once structure & distribution capital, it will submit the reorganization plan & disclosure statement the court . court Liquidation in Bankruptcy The liquidation of a bankrupt firm usually The occurs once the courts have determined that reorganization is not feasible. •Three important as of liquidation in Three bankruptcy are the procedures, the priority of claims, and the final accounting. of PROCEDURES • Judge may appoint a trustee • Trustee takes charges of the property of the Trustee bankrupt firm & protects the interest of the creditor. creditor. • The Trustee is given the responsibility to liquidate The the firm, Keep records, examine creditor’s claims, disburse money, furnish information as required & make final reports liquidation. make PRIORITY PRIORITY • Secured Creditors • Unsecured, or General Creditors...
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This note was uploaded on 03/24/2012 for the course BBA SBM taught by Professor Goa during the Spring '09 term at East West University, Chicago.

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