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How Businesses Use Corporate Debt Restructuring for Liquidity

Debt RR

These unsecured debts come in the form of payments for goods and services already received, royalties, commissions, or salaries. When a business starts skipping payments for these basic operational debts, it’s a major red flag that it’s in financial trouble. It’s a last-ditch effort to avoid a Chapter 7 liquidation bankruptcy.

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The Long Road Ahead? Puerto Rico Oversight Board Files Proposed Plan To Restructure The Commonwealth’s Debt And Other Claims

BN Lawyers

Proponents are confident that the Plan provides not only a framework to reduce the Commonwealth’s debt to sustainable levels, but a path to exit bankruptcy. The Plan, combined with the completed COFINA debt restructuring, reduces the maximum annual amount of government net-tax supported debt service from $4.2