Kevin Moses Paul
01 July 2021
As per your query let me tell you that if a company is bankrupt then it presumably is drowning in debt where liabilities hopelessly exceed assets. In a situation like this, the acquiring company is usually only going to acquire the assets as opposed to the stock of the bankrupt company. That allows the acquirer to avoid the liabilities associated with the failed company.
This is because a Company or a business organisation holds a separate individual identity that it's founders.
So the acquiring of an insolvent organization/company by another organization/company is subjected to a number of terms and conditions.
In every merger or amalgation, of a company, public interest is involved with commercial wisdom regulated by several crypto guiding rules, and thus, equitablility between the parties tends to govern both the parties.
Thus, the bankrupt company will receive the cash from the asset sale and pay off as much debt as possible and then shutdown.
Hope it helps
Regards
Kevin M. Paul
