Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (216710)	2/1/2005 8:24:11 AM
From: Elroy	Read Replies (2) \| Respond to of 1571896

A company is bankrupt when its liabilities exceed its assets AND no one will let it borrow money to cover that gap. Wrong again. A company is bankrupt when it cannot service its debts, and the debtor tries to take ownership the company's assets in lieu of the payment. A company can have assets of $1 million, all cash in the bank, liabilities of $2 million, all in the form of zero coupon notes due in 2010, and that company may not go bankrupt until 2010 when the notes are due. It just means that shareholders equity is negative $1 million. The shares probably trade at about a penny (and that's on the offer).