Financial distress is a situation where a fi rms operating cash fl ow is not suffi cient

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Financial distress is a situation where a fi rm’s operating cash fl ow is not suffi cient to cover contractual obligations. Financially distressed fi rms are often forced to take corrective action and undergo fi nancial restructuring. Financial restructuring involves exchanging new fi nancial claims for old ones.

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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