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You can liquidate shareholder equity without destroying the company. Public markets can recapitalize it after bankruptcy.
by anonuser123456 4y ago
You can liquidate shareholder equity without destroying the company. Public markets can recapitalize it after bankruptcy.
- chii 4y agoIsn't that exactly what is happening, with just with fewer steps? Or are you saying that the existing shareholders must take a haircut by forced selling, so that some other buyer can purchase these shares at a discount? Thus, it is a form of financial punishment for the shareholders to workaround the limited liability?