Financial distress costs
Legal and administrative costs of liquidation or reorganization. Also includes
implied costs associated with impaired ability to do business (indirect costs).
Related Terms: ...
These financial distress costs take two forms-explicit and implicit. Explicit financial distress costs include the payments made to lawyers, accountants, and so on in filing for Chapter 11 protection from creditors or in liquidation of the firm.
Events preceding and including bankruptcy, such as violation of loan contracts.
Financial distress costs ...
 See also: Financial distress, Reorg, Expense, Indirect cost, Direct costs
  
|
RSS
