Monday, February 3, 2014

Lesson 2 P2: Corporate Liquidation - Notes

Formulas to remember and understand:



Priority of Payments
1. Unsecured creditors with priority
2. Fully secured creditors
3. Partially secured creditors (the secured amount)
4. Unsecured liabilities without priority

*Free Assets usually do not include prepayments because they are being used up during liquidation or are part of fixed contracts.

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