What happens to employees when their companies go bust?

Clayton, Matthew
November 2008
People Management;11/27/2008, Vol. 14 Issue 24, p38
The article explains the difference between insolvency and bankruptcy, and their possible implications for human resource (HR) professionals. Insolvency is a generic term used to describe a situation where individuals or businesses are unable to pay their debts as they fall due or where their liabilities exceed their assets. Bankruptcy is an insolvency process that applies to individuals. Also discussed is the role of an administrator and the effect of insolvency on a company's redundancy liabilities.


Related Articles

  • THE SOCIAL COST OF BAD DEBT. Graue, Erwin // Quarterly Journal of Economics;May39, Vol. 53 Issue 3, p477 

    The article presents an analysis of bad debts during the periods 1900 to 1921 and 1922 to 1929. During the first period, 1900-1921, neither growth nor irregularity was displayed by total liabilities in bankruptcy, total net assets available for distribution to creditors and the percent ratio to...

  • First Passage and Excursion Time Models for Valuing Defaultable Bonds: a Review with Some Insights. Nardon, Martina // Frontiers in Finance & Economics;2008, Vol. 5 Issue 2, p1 

    In structural models of defaultable bond pricing default occurs at the first time a relevant process either reaches the default boundary or has spent continuously (or cumulatively) a fixed time period below that threshold. Unlike first-passage time approaches, excursion time models allow for a...

  • BK's AmeriKing files for Ch. 11; 3 regions jump gun on 99-cent whopper promo. Zuber, Amy // Nation's Restaurant News;12/16/2002, Vol. 36 Issue 50, p4 

    Reports on the filing for Chapter 11 bankruptcy protection by AmeriKing in Delaware. Reflection of the chainwide sales slump of the company; Amount of listed assets and liabilities of the company; Security of the financial investments of the company.

  • Form 6, Summary of Schedules.  // New Bankruptcy (9781413310252);May2009, p340 

    A summary of schedules of bankruptcy forms by the U.S. Bankruptcy Court for the northern district of California is presented. The name of the schedule and the amount of assets and liabilities are mentioned in the schedule.

  • STUDY ON THE SOLVENCY OF ROMANIAN COMPANIES. Csegedi, Sandor; Bātrâncea, Ioan; Todea, Angela // Annals of the University of Oradea, Economic Science Series;2012, Vol. 21 Issue 1, p661 

    In this paper the authors describe how the analysis of solvency to prevent bankruptcy of Romanian companies. In this respect safety intervals are identified by the authors after analyzing the financial condition of more than 900 Romanian companies.

  • ABC-Certified Attorneys Score Big. BERNSTEIN, ROBERT S.; MCCLURE, SHAWN P. // ABI Journal;Oct2015, Vol. 34 Issue 10, p42 

    The article focuses on the unsecured creditors' committee in chapter 11 filing of the U.S. Bankruptcy code, which has the power to place a bankruptcy claim on behalf of its constituents. It states that Section 1103 of Chapter 11 gives the creditors the right to investigate a debitor's financial...

  • The Types of Chapter 11 Cases. Lubben, Stephen J. // American Bankruptcy Law Journal;Spring2010, Vol. 84 Issue 2, p233 

    The article presents the use of a new dataset of nearly one thousand chapter 11 cases field in 2004 in the U.S. It highlights the discovered break point, the point at which the sum of the assets and liabilities of the debtor exceeds 2.8 million dollars. It explores the three broad types of...

  • VALUE JUDGEMENTS. Cole, Louise // Commercial Motor;4/6/2006, Vol. 203 Issue 5172, p60 

    This article focuses on insolvency in companies. Insolvency has been defined as either one can't pay their bills as they fall due or the liabilities are greater than the assets. Craig Livesey, director in business recovery services at PriceWaterhouseCooper, stated that if companies are aware of...

  • Tempered Expectations: True Temper Goes Ch. 11. Marino, Jonathan // Mergers & Acquisitions Report;10/12/2009, Vol. 22 Issue 41, p17 

    This article reports on the filing for bankruptcy protection by U.S. sports equipment manufacturer True Temper Sports in 2009. According to True Temper, it has estimated assets of 180.5 million U.S. dollars and liabilities of 319 million U.S. dollars. An agreement has been reached by the company...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics