If a company is on the verge of bankruptcy and has lost its ability to issue bonds or stock due to a lack of confidence by investors, which source of financial capital might still be available?

Question

Quizplus · Accepted Answer

Private equity funding might still be available to a company on the verge of bankruptcy when traditional methods of raising capital, such as issuing bonds or stock, are not viable due to a lack of investor confidence. Private equity firms may be willing to invest in such companies, often in exchange for a significant stake in the company, because they specialize in restructuring and turning around distressed companies.

If a Company Is on the Verge of Bankruptcy and Has