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Debt Default
Viability Analysis
Corporations at all stages of evolution often raise Capital as
the proceeds of issuance of debt instruments in the Capital Markets
which usually have set redemption dates several years into the
future. Severe and persistent financial shortfall in the revenue
generation of some such corporations results in the defaulting on
redemption of bonds. Upon such default the consideration then
becomes of two folds. One consideration is whether the corporation
will be able to make the redemption at some appropriate time in the
future. The other consideration is whether the corporation is in
eminent jeopardy of filing for bankruptcy protection. So advance
advisory of such potential failure for redemption allows for
informed alternative investment decisions.
Analysis and Scope
The circumstances resulting in redemption default are often derive
from one of two performance constraints: The first constraints
derive almost exclusively from a degradation over time of the Market
Allocation of the corporation, The second constraints is usually a
consequence of lack of Production Volume Stability.
Any resolution of the default condition prevailing therefore must
address both these conditions.
The firm uses its proprietary software,
Corporations Viability Analyze, for perfuming the analysis at a
significantly fast enough pace to enable the emergence of a
corporation in the Chapter 11 Bankruptcy protection. |
