Not exact matches
Because the converts are trading at a premium to face value (because if converted they are more valuable than their
liquidation value) but are accounted for only at
liquidation value in the NAV calculation, the conversion will result in dilution
of the
total asset value and thus the NAV per share.
About four - in - ten college - educated student debtors possess
total debts exceeding the value
of their
assets, hence
asset liquidation will not entirely meet their outstanding debts in the event
of job losses and other unforeseen economic shocks.
Chapter 7 bankruptcy laws outline a process called
liquidation, in which some
of the debtor's
assets are sold by the court in exchange for
total forgiveness
of eligible debts.