Which of the below is a possible outcome of an issuer being in default? Neither outcome 1 nor 2 Outcome 1: The sale of the issuer's assets and the distribution of the proceeds to debtholders (and possibly equityholders), which is referred to as liquidation. Both outcomes 1 and 2 Outcome 2: The adjustment of a term or terms of the debt contract on which the issuer is in default, which is referred to as reorganization