Tuesday, 28 August 2012
Company Bankruptcy - What does it mean?
The insolvency world is full of misnomers like "company voluntary liquidation", "creditors voluntary arrangement", "going into receivership" "company voluntary agreement" (when they really should use phrases like administration, administrative receivership, company voluntary arrangement or creditors voluntary liquidation).
What about the word bankrupt and bankruptcy? This only applies to individuals, a company cannot go bankrupt. So when anyone, often jounalists, say a company is going bankrupt they are showing that they know little about insolvency!