Tight cash situation in which a business, household, or individual cannot pay the owed amounts on the due date. If prolonged, this situation can force the owing entity into bankruptcy or forced liquidation. It is compounded by the fact that banks and other financial institutions refuse to lend to those in serious distress. When a firm is under financial distress, the situation frequently sharply reduces its market value, suppliers of goods and services usually insist on COD terms, and large customer may cancel their orders in anticipation of not getting deliveries on time.
Related information about financial distress:
- Financial distress - Wikipedia, the free encyclopedia
Financial distress is a term in corporate finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty.
- Financial Distress Definition | Investopedia
A condition where a company cannot meet or has difficulty paying off its financial obligations to its creditors. The chance of financial distress increases when a ...
- What is financial distress? definition and meaning
Definition of financial distress: Tight cash situation in which a business, household, or individual cannot pay the owed amounts on the due date. If prolonged, this ...
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notion that financial distress is a different state from insolvency has some ... My model, on the other hand, is based on the cost of financial distress and provides ...
- Financial Distress - Webs
Financial distress may lead a firm to default on a contract, and it may involve financial restructuring between the firm, its creditors, and its equity investors.
- Financial Distress - Financial Dictionary - The Free Dictionary
Events preceding and including bankruptcy, such as violation of loan contracts. Financial Distress. A stage before bankruptcy where a company's creditors are ...
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ing with a simple framework for financial distress and a quick overview of the ... the areas of financial distress, asset and debt restructuring, and features of the ...
- The Risk-Adjusted Cost of Financial Distress - Journal of Finance
Financial distress is more likely to happen in bad times. ... Financial distress has both direct and indirect costs (Warner (1977), Altman (1984), Franks and ...