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er 5mil - 1mil - 2mil = 2 mil...so the subordinated should get all their money back?
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All Comments (41)
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Many cool tips about Chapter 7 Bankruptcy! Thanks for sharing!
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ty
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Chapter 7 is a good solution
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Math fail... :P
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what you explain in the second half of the video is that an Collateralize Debt Obligation? is bank debt traded like bonds?
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Have you ever taken an accounting class? The dollar sign only has one line through it. $
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amazing , you just made me understand something that my professor could not :)
thanks
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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?
masakmerah 3 years ago
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.
khanacademy 3 years ago 6