16. Bankruptcy and reorganization Aa Aa In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entities. Severe liquidity shortfalls in the United States as well as other global markets led to a serious credit crisis. During the credit crisis of 2008-2009, several banks and other businesses went through a reorganization process or were forced to liquidate. Consider the following statement: In January 2009, American electronics retailer Circuit City Inc. closed all of its stores and sold all of its merchandise. The above is an example of: O Reorganization O Liquidation