Mina Mar Group

When you start your business you are so concentrated on growing and expending your business that you forget to consider the downsides of business cycles. Business cycles are sequences of economic activity that is characterized by four phases: recession, recovery, growth and decline that repeat themselves.Decline or downturn makes the end of growth period in the business cycle. It is characterized by decreased levels of consumer and reduced production. Maybe you missed to devise downturn business cycle management strategy and found yourself trapped in a situation where your creditors are hounding.  Toxic financing can demolish your life's work and erode your shareholder value. It happens when financier can convert preferred shares and convertible stock into common stock that they sell on the market in order to be repaid and earn a profit on investment. The formula for the conversion is structured so that there is no downside limit on the price received for converted ...

Bankruptcy happens when business is unable to pay its debts and creditors. Business can file with federal bankruptcy court  for protection, usually under chapter 7 or chapter 11. In the United States bankruptcy is governed by federal law commonly referred to as the "Bankruptcy Code". Bankruptcy cases are filed in the U.S. Bankruptcy Court and federal law govern procedure in bankruptcy cases but state laws are often applied to determine how bankruptcy affect property rights and debtors. Two major types of bankruptcy are Chapter 7 and Chapter 11. Chapter 7 happens when company ceases all of its operation and goes completely out of business. A trustee is appointed to sell (liquidate) company's assets in order to pay off its debt. Debts are payed off according  to absolute priority. It is rule that secured claims are paid before junior claims are paid. In that order secured creditors are paid first, then bondholders and in the end shareholders. In other words, invest...