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View Full Version : What the equity holders gets after Bankruptcy


rahul1979
Jun 5, 2009, 01:25 AM
What the equity share holders will receive after Bankruptcy? Specially in case of GM?

Varun Tibrewala
Jun 5, 2009, 01:40 AM
In case of bankruptcy, the equity shareholders of the company receive payment from the assets left after settlement of all the external liabilities, in case any left after settlement of all the claims.
This is possible in cases, where external liabilities are settled at value less than that in balance sheet or assets have been realized at a good value.