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Just curious, does anyone know if something like liquidation preferences are relevant when the money flowing out is due to lawsuits?
by tedmiston 10y ago
Just curious, does anyone know if something like liquidation preferences are relevant when the money flowing out is due to lawsuits?
- mikeryan 10y agoIt's two different things. By definition liquidation preferences only happen in liquidation events and investors are generally "owners" not "creditors" so they only get what's left after creditors are paid. (I'm assuming this is ending in bankruptcy for Theranos - which may not be fair)