Corporate Financial Distress and Bankruptcy

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During the recession from 1981 to 1983, seven billion-dollar firms filed for bankruptcy, but that number skyrocketed to thirty-three from 1988 to 1992. The demand for expertise in predicting, managing, and profiting from corporate distress has never been greater. The Second Edition of Corporate Financial Distress and Bankruptcy by Edward I. Altman offers a comprehensive array of tools and techniques for navigating financial crises. It includes updated insights on distressed firm investing through a unique index measuring defaulted debt price movements and market performance. The book presents robust statistical models for assessing distress potential, alongside a powerful framework for bank loan valuation that establishes criteria for loss reserves and pricing guidelines. An innovative technique for present value assessment helps banks comply with accounting standards requiring market value reporting. Turnaround strategies are detailed, including a case history of GTI Corporation, while the literature review evaluates recent scholarly work on distressed firms. Additionally, the international dimension features a bibliography of failure prediction models applied globally, encompassing both industrialized and developing economies. In a time of increasing bankruptcies, this edition provides essential guidance for navigating the complexities of corporate financial distress.