Books on Bankruptcy, Distressed Debt, and Restructurings2018-12-15T03:55:51+00:00

Forums General Questions Books on Bankruptcy, Distressed Debt, and Restructurings

Forums General Questions Books on Bankruptcy, Distressed Debt, and Restructurings

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  • Alaric M Newbie
    Post count: 6

    Hey Everyone,

    Recently as I have been looking at companies and financials I have noticed that I don’t feel like I have a deep enough understanding of the process of a business declining and entering bankruptcy. Was wondering if anyone on here has any recommendations on how to see this ahead of time in financials and the process of bankruptcy and restructurings in general. Thanks!

    Rajiv RenganathanRajiv Renganathan Moderator
    Post count: 98

    Hi Alaric

    It would go back to the 2 main financial statements.
    – P&L: Declining sales, profit margins
    – Balance Sheet: Debt equity & Liquidity ratios- https://www.investopedia.com/terms/l/liquidityratios.asp

    These would indicate declining business. Bankruptcy in itself is a business decision and it can come as a surprise. (Considering managements & boards are paid to navigate the business, this should not happen but it does!!!)

    Regards
    Rajiv

    “Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”
    ― Charles MacKay, Extraordinary Popular Delusions & the Madness of Crowds

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