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Chapter 7:Bankruptcy Liquidation

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Uploaded by on Feb 3, 2009

Introduction to bankruptcy liquidation (Chapter 7)

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Uploader Comments (khanacademy)

  • Sal, if the assets were only 5 mil, and there only enough for Subordinate to get 1 mil back (instead of 2 mil)......doesnt the equity holders owes the Subordinates the difference (1 mil)? dont they have to pay?

  • No, the stock/equity can only go to zero. It cannot be negative. If I own a share of GM, the worse thing that can happen is that it becomes worthless. I wouldn't ever "owe" money to GM's unsecured creditors.

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  • er 5mil - 1mil - 2mil = 2 mil...so the subordinated should get all their money back?

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  • Many cool tips about Chapter 7 Bankruptcy! Thanks for sharing!

  • ty

  • Chapter 7 is a good solution

  • Math fail... :P

  • what you explain in the second half of the video is that an Collateralize Debt Obligation? is bank debt traded like bonds? 

  • Have you ever taken an accounting class? The dollar sign only has one line through it. $

  • amazing , you just made me understand something that my professor could not :)

    thanks

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