Philippine E-Journals

Alternative Coping Mechanisms forCorporate Insolvency

Catherine T. Manahan

Discipline: Economics, Business

 

Abstract:

Generally, operations of a business maycontinue even after a loss. But sooner orlater, this kind of operation may result inbankruptcy or insolvency. The usual meaningof insolvency is that the liabilities of the businessexceed its assets, but the term is also usedin many cases to characterize a concern whichis unable to meet its ordinary debts as theymature because its assets, though greater thanits liabilities, are frozen and hence unavailablefor payment of debts.