Reply to post: Re: Assets and liabilities?

'Apple Watch' sapphire glass maker files for bankruptcy protection

jonathanb Silver badge

Re: Assets and liabilities?

If the asset is a half-built factory that is no use to anyone until it is completed at the cost of another $1bn, and no to anyone else other than that company, and the liability is a $1bn bank loan that is repayable next week, and they are unable to refinance the bank loan and get another loan for the other $1bn to complete the factory, then they have a problem.

Or even if the loan isn't repayable next week, but they don't have enough money to finish the factory and no way to get the money to finish it, they have a problem.

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