Example collocations logo

Bankruptcy in sentence

561 examples of Bankruptcy in a sentence

Doing so risks putting investors in the same position as the last shareholders in Peabody Energy, the world’s largest private coal company, which is teetering on the edge of bankruptcy.
Furthermore, this period of monetary tightening had unexpected consequences; financial institutions like Citicorp found that only regulatory forbearance saved them from having to declare bankruptcy, and much of Latin America was plunged into a depression that lasted more than five years.
For example, a bankruptcy law that privileges derivatives over all else, but does not allow the discharge of student debt, no matter how inadequate the education provided, enriches bankers and impoverishes many at the bottom.
Bankruptcy Comes to ChinaBEIJING – China’s businessmen have always needed resilience, but now they must become accustomed to the specter of bankruptcy.
For China now has a bankruptcy code with teeth, and the country’s courts are beginning to enforce it with rigor.
Its execution, however, was crippled by its very narrow scope for application, the absence of corresponding laws governing corporate restructuring, excessive government intervention, incompatibility with the policy-based bankruptcy procedure then in place, technical errors, and a general inability to make the code operational.
Compared with the original bankruptcy code, the 2006 code is firmly rooted in the needs of a market economy.
The legislation also imposed a deadline to abolish “policy-based bankruptcy” – the practice adopted by the State Council to liquidate loss-making state-owned enterprises (SOEs) and resettle laid-off employees.
Indeed, resettlement of laid-off SOE employees, and other social implications of layoffs, should now be addressed primarily by government through the social safety net, rather than as part of the bankruptcy process.
The new code also introduces the concept of “administrative receivership,” whereby lawyers, certified accountants, and other intermediaries act as managers of enterprises undergoing bankruptcy.
If no viable solution is found, no agency or individual will be willing to serve as the receiver in ordinary bankruptcy cases.
The possibility of restructuring balances the interests of stakeholders and uses legal protections to help potentially risky enterprises prevent or avoid bankruptcy if a bailout is worthwhile or possible.
To prevent fraud, an acute problem in the past, the new law established a “right of rescission,” whereby the receiver can ask courts to rescind any action by a debtor that involves fraud, evasion, or unfair liquidation in the prescribed period before a bankruptcy petition is accepted and assets recovered.
Moreover, the Criminal Law of the People's Republic of China now includes bankruptcy fraud.
The successful implementation of China’s revised Bankruptcy Law hinges on its effective enforcement and abandonment of the mindset and practices shaped under the old version, especially in the era of policy-based bankruptcy.
Despite the difficulties that remain, China’s bankruptcy legislation is increasingly adapted to the market economy; the trend is irreversible.
If such a contingent-capital structure had been in place before the crisis, troubled banks would have been recapitalized by the contingent debt holders while avoiding the complications and legal posturing inevitable in formal bankruptcy.
Disruptive and time-consuming bankruptcy proceedings could be avoided as banks often provided the necessary fresh funds to support corporate restructuring.
Any country required by its public-pension policy to transfer billions of dollars to citizens for decades-long retirement periods risks bankruptcy or, at best, stagnation.
Despite communism’s ideological bankruptcy, China has not changed in this regard.
And, as for protecting the financial system against disaster, the current majority on the House Financial Services Committee is clear – they favor use of the bankruptcy system when megabanks get into serious trouble.
Above all, the central bank must ensure that the money supply is large enough that mere illiquidity, rather than insolvency, does not force banks into bankruptcy and liquidation.
In the United States, from September 15, 2008 – the day that the investment bank Lehman Brothers filed for bankruptcy – until then-US Treasury Secretary Tim Geithner announced in May 2009 that in his judgment the major US banks either had or could quickly raise adequate capital cushions, the two camps’ interests and conclusions were identical.
Their answer is bankruptcy arrangements and haircuts for creditors, bigger social programs, capital controls.
Concerns about bankruptcy - that the high interest rates pushed by the IMF in East Asia would force firms into distress, even adversely effect the exchange rates while destroying economies and making countries less attractive to investors - derived from a theory of corporate finance, itself derived from theories of asymmetric information.
At the most simplistic level: in a world with perfect information, bankruptcy would not exist - why, indeed, would anyone lend to someone who they knew would not repay them?
Yes, creating a more streamlined bankruptcy process can reduce the decibel level of a bank’s failure, and bankruptcy judges are experts at important restructuring tasks.
Restructuring a mega-bank requires pre-planning, familiarity with the bank’s strengths and weaknesses, knowledge of how to time the bankruptcy properly in a volatile economy, and the capacity to coordinate with foreign regulators.
For example, the plan would bar regulators from initiating a mega-bank’s bankruptcy, leaving it to the discretion of the bank’s own managers.
In the nonfinancial sector, failing companies often wait too long before declaring bankruptcy, so creditors may step in to do some pushing, potentially even forcing a bankruptcy of a failed firm.
BackNext