Fri.Dec 13, 2019

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How Businesses Use Corporate Debt Restructuring for Liquidity

Debt RR

Corporations have been increasingly defaulting on debt, with many businesses are struggling to maintain revenues and liquidity. Sometimes businesses aren’t prepared for market changes or a slump stretches longer than it should have, causing them to fall further into debt as bills pile up. Banks can seize business assets and liquidate as a last resort to cut their losses.

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What to do When You’re Served Papers for a Debt

Debt RR

U.S. businesses have a mounting debt. Forbes estimates large companies with nonfinancial corporate debt account for 48% of the country’s GDP at $10 trillion. Small- to medium-sized businesses account for another $5.5 trillion, bringing the total to 74% of the U.S. GDP. Adding to the problem is a weak economy heading into 2020. This leaves businesses struggling to maintain revenue while debt continues to pile up.