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Which of the below is a possible outcome of an issuer being in default? Group of answer choices Neither outcome 1 nor 2 Outcome 1:
Which of the below is a possible outcome of an issuer being in default?
Group of answer choices
Neither outcome 1 nor 2
Outcome 1: The sale of the issuers assets and the distribution of the proceeds to debtholders (and possibly equityholders), which is referred to as liquidation.
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.
Both outcomes 1 and 2
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