Sentences with phrase «liquidation if»

Life insurance can save a business from liquidation if a partner, the CEO or a key person dies but it is often shoved to the side because companies look for help in all the wrong places.

We can also help you switch to a Chapter 7 liquidation if you are having trouble making the payments on a previous Chapter 13 bankruptcy plan.

To us, credit analysis is not so much a process of measuring the probabilities of whether money defaults will or will not occur, but rather measuring how the creditor will fare in a reorganization or liquidation if a money default does occur.

Not exact matches

It would be completely off - market (and offensive) if a venture term sheet entitled the preferred stockholders to, say, a 2.5 x liquidation preference.

If brought in early enough, an accountant could help to prevent liquidation or bankruptcy and could prevent a total collapse of the business.

The CHOICE Act would also roll back SIFI criteria for what are termed «living wills» — essentially these are liquidation resolution plans under bankruptcy laws to be implemented if things go to heck in a hand basket.

If they ran out of money this time, they would wind down the company and sell it for liquidation.

Upon liquidation, holders of such debt securities and preferred shares, if issued, and lenders with respect to other borrowings would receive a distribution of our available assets prior to the holders of our common stock.

Based on the above example then, if the liquidation preference is 2.0 X, Seed investors are guaranteed 2.0 X times their money back assuming the startup returns at least $ 500,000 to its shareholders (i.e. 2.0 X the $ 250,000 Seed round size).

If they had simply invested through preferred stock and received the industry - standard 1.0 X liquidation preference they would have gotten every dollar back.

Seed investors would still earn a 2.0 X return only if their preferred stock included a 2.0 X liquidation preference.

Taking it one step further, if the investors had received 1.5 X or 2.0 X liquidation preference, they would have actually earned 1.5 x and 2.0 x return, respectively, despite the startup losing value.

In this scenario, if Seed investors didn't receive a liquidation preference (which would be the case if they had invested in common stock) they would receive 80 cents on the dollar.

If you want an excellent further primer please see this excellent post on the «liquidation preference overhang» by José Ancer in which he gives even more math and the solution options.

With a normal 1x liquidation preference this investor would be entitled to $ 500,000 if you sell your company one day for less than $ 5 million (if you sell for more they would rather take their % ownership than the liquidation preference, which is basically downside protection)

When you do a convertible note with a cap that converts into the next round of funding one of the unintended consequences is that if you're successful and raise at a larger price than your cap the early angels often get «multiple liquidation preferences» on their dollars in.

That dam, if it gets built, will supply surplus electricity this province has no need for, other than to power the LNG liquidation plants, to which it will be sold at great discount, since it can not be stored.

This can be expressed as a multiple to the investment amount (2X or 3X, for example), or as a «double - dip» — the investor's right to get their money back, plus an amount equal to the as - if - converted value (that is, the amount the investor would receive on liquidation had they converted their preferred shares to common shares).

If the founders have aggressively negotiated the startup's valuation, occasionally investors will require an additional sum to be paid on liquidation.

If this authority had existed in 2008, Bear's bondholders would not now stand to get 100 % of their money back, with interest, as they presently do, and Lehman's disorganized liquidation would have been completely unnecessary.

Granted, this liquidation has stopped, for now, but what was the reason in the first place, if not to raise badly needed and externally denominated funds?

If the company is deemed to be in breach, the lenders could demand to be paid back the entire loan immediately, which could force Toys «R» Us into liquidation.

The company hasn't breached any covenants yet, it said, but if it is found to be in breach, the lenders could force it to pay back the entire loan immediately, which could force Toys R Us into liquidation.

«If this note converts at a price higher than the cap that you have been given you agree that in the conversion of the note into equity you agree to allow your stock to be converted such that you will receive no more than a 1x non-participating liquidation preference plus any agreed interest.»

If there is no bid that satisfies the court and the creditors, Bon Ton will likely be forced into liquidation.

Hold on to the ETF shares until liquidation: This alternative may be suitable if the ETF is invested in a sector that is not volatile and the downside risk is minimal.

For instance, in a similar step - transaction - doctrine issue with partial 1035 annuity exchanges and subsequent liquidations (which allowed annuity owners to get more favorable treatment in the multi-step process than could have been obtained if treated as a whole), the IRS ultimately declared in Revenue Procedure 2008 - 24 that as long as the taxpayer waited at least 12 months between the 1035 exchange and the subsequent liquidation, it would be allowed.

Selling to liquidation companies can clean your warehouse out of most, if not all, of your excess inventory in one fell swoop — but you likely won't earn more than pennies on the dollar.

The Fed only stands to lose if the bank itself fails, and so spectacularly that the bank's liquidation value goes negative even after zeroing out bondholder claims and stockholder equity.

Some of these funds provide far more liquidity to the customer than the underlying assets in the fund, and it is reasonable to worry about what would happen if these funds went into large liquidation.

For example, if a founder contributes a significant amount of cash (i.e. enough to buy a car) to fund the company, then I might suggest that the company issue preferred stock with a liquidation preference and no other rights to the founder, as opposed to issuing common stock.

The VCs are obviously going to ask for first position if a liquidation were to occur so why go down the path of preferred shares forthe Angels?

Please see the liquidation preference spreadsheet and program some examples if you want to proof this yourself.

For example, if the merger consideration is $ 20M, the holders of Series A would receive $ 1.50 / share, or an aggregate of $ 15M (which represents the $ 10M liquidation preference and $ 5M of participation with the common), and the holders of common would receive $ 0.50 / share, or an aggregate of $ 5M.

If the company is sold for $ 10M to $ 20M, the holders of Series A would still receive $ 1.00 / share as a rational Series A holder would never convert his / her shares to common as the Series A holder would receive more from the Series A liquidation preference than as a holder of common.

If merger consideration is $ 50M, the holders of Series A would receive $ 3.00 / share, or an aggregate of $ 30M (which represents the $ 10M liquidation preference and $ 20M of participation with the common), and the holders of common would receive $ 2.00 / share, or an aggregate of $ 20M.

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Liquidation proceeds, if any, will be allocated.

But having a note means the investor has a kind of liquidation preference - they will receive value, if any, from the liquidating company's assets, before the founders do.

Some people do not realise how close Arsenal Football Club was to going into liquidation, if it wasn't for the supporters buying bonds back then, the club would have had to do a Leeds and tumble down the ladder.

If the Seven Slings site or some other reseller site were to hold a huge 50 % + sale of its baby carriers, it's usually for the sake of merchandise liquidation.

U.S. Senate Minority Leader Chuck Schumer has asked the Federal Trade Commission to protect consumers holding Toys R Us gift cards that could become worthless if the toy retailer moves forward with a liquidation plan.

8.2.3.1 If either party becomes insolvent or becomes subject to receivership, liquidation or similar external administration.

If you know me, you know Loehmanns is MY STORE (next to Marshalls, of course) and although I am deeply saddened by Loehmanns» liquidation process, the killing I made at the liquidation sale came of some consolation.

If you happen to find yourself near one of the Borders stores being shut down, be on the lookout for fliers and posters because it appears that there will be stock liquidation sales at any number of locations as the restructuring moves forward.

Amanda — is there a way (I really have no idea bout this) to parse those hard - cover numbers further, to see how much, if any, of that up - tick came from discounted h / c's from the Borders liquidation?

Some inventory may have little to no liquidation value, and if that's the case, you'll have little luck getting approved for financing.

MediciNova Inc (NASDAQ: MNOV) has made an offer for AVGN that represents a clever way for AVGN's stockholders to receive cash equivalent to that which they would receive in a liquidation (less $ 7M to be paid to MNOV) with the possibility for «an extraordinary, uncapped return» if MNOV is successful post-merger.

MediciNova, Inc.'s (NASDAQ: MNOV) has made an offer for AVGN that represents a clever way for AVGN's stockholders to receive cash equivalent to that which they would receive in a liquidation (less $ 7M to be paid to MNOV) with the possibility for «an extraordinary, uncapped return» if MNOV is successful post-merger.

Better it would be if the Fed, which is the main blower of bubbles through easy monetary policy, would pull back on policy when aggregate levels of debt in the economy get above 200 % of GDP, or, would allow us to go through recessions where there is significant pain, and liquidation of bad investments.