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Bill is a student at the local high school. He was caught chewing tobacco in the boys' laboratory and sent to the principal's office. As punishment, the principal made him swallow the wad of tobacco, which immediately made Bill throw up. Bill went home and told his parents of the incident, and the next day they contacted a lawyer.
Bankruptcy
A legal proceeding involving a person or business that is unable to repay outstanding debts.
Sale of Assets
The process of selling company properties, plant, and equipment to generate cash.
Bondholder Claims
The rights or entitlements that bondholders have to receive payments of principal and interest, as well as their place in the hierarchy of creditors in the event of a default.
Debt/equity Ratio
A ratio used to determine how much of a company's assets are financed through equity versus debt.
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