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#reading-37-measures-of-leverage
A number of bankruptcy codes provide in some form for two categories of bankruptcies. One form provides for a temporary protection from creditors so that a viable business may reorganize. In the United States, the US Bankruptcy Code sets the terms for the form of negotiated reorganization of a company’s capital structure that allows it to remain a going concern in Chapter 11. For businesses that are not viable, the second form of bankruptcy process allows for the orderly satisfaction of the creditors’ claims. In the United States, this form of bankruptcy is referred to as liquidation.
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