What is bankruptcy?

in accordance with Chapter VII of the United States, “Bankruptcy Law”, the company filed for bankruptcy entire business must stop immediately. To ldquo by the bankruptcy trustee; cleaning up rdquo; (auction) the company’s assets, the proceeds used to repay debt, including debt to creditors and investors.

In general, if the company’s application under the United States “Bankruptcy Law” Chapter 7 bankruptcy, investors in the hands of the stock usually becomes a waste, because if the bankruptcy court confirmed the debtor insolvent (liabilities greater than assets) , you can not return the investment of shareholders.

bankruptcy, liquidation to be exact, it can be understood as facing serious problems of debt or other corporate breakup or make it disappear, so the company’s products and after-sales service will be seriously affected.

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