bankruptcy jing zhang. reasons of bankruptcy balance sheet asset equity liability asset= liability +...
TRANSCRIPT
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Bankruptcy
Jing Zhang
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Reasons of Bankruptcy
Balance Sheet
Asset
Equity
Liability
Asset= Liability + Equity
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Reasons of BankruptcyO Individuals:
O Held CreditorsO In Finance Distress
O CompaniesO Getting Finance Distress
O Voluntary & Involuntary
‘Discharge of Debts!’
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Ways of BankruptcyO Chapter 7: LiquidationO Chapter 11: Reorganization
(usually companies)O Chapter 13: Adjustment of Debts of
an Individual With Regular Income
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Chapter 7O ‘The chapter of the Bankruptcy Code
providing for "liquidation," ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.)’
O Eligibility (Individual)
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Chapter 13O ‘The chapter of the Bankruptcy Code
providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)’
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Chapter 11O ‘The chapter of the Bankruptcy Code
providing (generally) for reorganization, usually involving a corporation or partnership.’
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Process of Chapter 11O Filing Bankruptcy to a CourtO Debtor in possession or trusteeO Creditor CommitteeO A plan of reorganization within 120
daysO Accept/ Reject the planO Approval from CourtO New company
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How many companies filed Chapter 11 from 1997 to 2007
O Over 2000
O 1500~2000
O 1000~1500
O Less than 1000
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How many of them successfully emerged?
O Over 300
O 250~300
O 200~250
O Less than 200
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Summary
Cannot Payoff Debts
Filing Bankrupt
cy
Involuntary Petition
Chapter 7
Liquidation
Chapter 11Reorganizati
on
Company ‘Dead’
Reorganization Plan
Reject Plan
Accept Plan
New Company
New Plan
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Questions?Thank You
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ReferenceO EISENBACH, B. (2012, 05 24). Forced into bankruptcy: The involuntary
bankruptcy process. Retrieved from http://bankruptcy.cooley.com/2012/05/articles/business-bankruptcy-issues/forced-into-bankruptcy-the-involuntary-bankruptcy-process/
O Liquidation under the bankruptcy code. (n.d.). Retrieved from http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter7.aspx
O The bankruptcy process step-by-step. (n.d.). Retrieved from http://www.bankruptcylawhelp.com/Bankruptcy/Bankruptcy-Process.aspx
O Reorganization under the bankruptcy code. (n.d.). Retrieved from http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter11.aspx
O Individual debt adjustment. (n.d.). Retrieved from http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter13.aspx
O U.S. Code Title 11O “Emerging from Bankruptcy with When-Issued Trading,” Raymond M.
Brooks and J. Jimmy Yang Financial review (The), vol.47, pp. 445-467, (August 2012).