How to avoid bankruptcy
Article Abstract:
Quasi-reorganization and troubled debt restructuring are two alternatives to bankruptcy. Quasi-reorganization involves revaluing the company's assests and liabilities and reorganizing the capital structure to provide the company with a 'fresh start.' State laws require that quasi-reorganizations include stockholder consent, a revised balance sheet and zero balance for retained earnings. Companies opting for quasi-reorganization must also increase their additional paid-in capital. On the other hand, debt restructuring involves bargaining with creditors for changes in the terms of the debt, exchanging assets for debt or exchanging equity for debt. Companies must compare the undiscounted amount of assets or equity to be given to the creditor with the carrying value of the liability to determine debtors' gains and creditors' loss. Future transfers of assets or equity will also be considered repayments of the principal with no interest.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1993
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Getting What's Yours When You're the Subcontractor
Article Abstract:
Subcontracting is easier on the treasurer when payment or performance bonds are obtained prior to the contract. Researching accounts is advised to gauge their financial standing. Read the contract before signing it and look over the payment terms, insurance and employment provisions carefully. Monitor costs carefully for timely progress billings. When collecting amounts owed, check to make sure there are no problems at completion, call top management as soon as an invoice becomes past due, know your legal rights and be prepared to hire an attorney.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1984
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