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ENDING THE NEW

VENTURE

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DOMINATORZ

GROUP MEMBERS:

 Hina Ambreen
 Umair Khan
 Shoaib Shahzad
 Waqar Ali
 Muhammad Ejaz
 Badr Ul Haq

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Introduction
 Even though the intent of all entrepreneurs is to establish a
business for a long time, many problems can cause these plans to
fail.

 Since about one-half of all new ventures fail in their first four years
of business.

 It is important for the entrepreneur to understand the options for


either ending or salvaging a venture.

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What Does Bankruptcy Mean
 The word bankruptcy is formed from the ancient Latin
Words.

 bancus (a bench or table)


 ruptus (broken).

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Bankruptcy

Bankruptcy is the process:

“ where a person legally declares himself or his business unable to


pay outstanding debts”.

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What exactly is bankruptcy?

 Bankruptcy is a federal court process:

“ designed to help consumers and businesses eliminate their


debts or repay them under the protection of the bankruptcy
court.”

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Types
 bankruptcies can be divided into two types:

 liquidation
 reorganization.

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Primary Players
 Judge
 Debtor
 Creditor
 bankruptcy Trustee

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Reorganization
Reorganization actually means:

“The act or process of organizing again or differently.”

Reorganization consists of a series of agreements between


the company
its creditors,
the court
which allow for the company to repay its debts and alter its structure to
prevent the same problems form arising again.

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REORGANIZATION
Reorganization is an attempt to extend the life of a company
facing bankruptcy through special arrangements and
restructuring in order to minimize the possibility of past
situations reoccurring

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Surviving Bankruptcy
 Filing for bankruptcy is can be a last resort or the best
looking option for a new financial start.
 The road to financial recovery may be long, but there are
ways to help you recover from not only the financial, but the
mental strains as well.

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Surviving Bankruptcy
 you can survive bankruptcy and successfully
manage your finances afterward.
 Bankruptcy is meant to give debtors a fresh start.

 Talk to experts
 Address your mistakes
 Rebuilding
 Don’t do it again
 Get back on your feet

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Prepackage Bankruptcy

The ability for a company to liquidate or claim bankruptcy


through a financial organization that is structured to help
company's who are in financial distress.

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Prepackaged Bankruptcy
 A plan for financial reorganization that a company prepares in
cooperation with its creditors that will take effect once the
company enters bankruptcy.
 This plan must be voted on by shareholders before the
company files its petition for bankruptcy, and can result in
shorter turnaround times.

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Pre-Packaged Bankruptcies
(“Pre-Packs”)
Advantages of Pre-Packs

 Avoids costs of lengthy bankruptcy process where business


decisions must be authorized by the court

– Saves legal fees


– Minimizes adverse effects on the underlying business

 Allows firm to implement an “exchange offer” without unanimous


consent of bondholders

– Trust Indenture Act prohibits changes in coupons, maturity, principal,


and other economically relevant terms outside of bankruptcy

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Extended Time Payment Plans
A customer who cannot pay back a loan when it is due has the
option of entering into an Extended Payment Plan (EPP).
This service allows the loan to be repaid over a period of
additional weeks.

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Extended Time Payment Plans

Under the extended plan, you'll pay a fixed annual or


graduated repayment amount over a period not to exceed 25
years.

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Extended Time Payment Plans
 This is a good plan if you will need to make smaller monthly
payments. Because the repayment period will be 25 years,
your monthly payments will be less than with the standard
plan. However, you may pay more in interest because you're
taking longer to repay the loans.

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America Extended Payment Plan

 The Extended Payment plan is a Special Financial


Arrangement whereby payment of this Program Fee can be
extended over a period of seven months. As the Program Fee
is to be paid within seven months from your au pair's arrival
date into the United States, the Extended Payment Plan is
only offered to those families who have a twelve month
contract.

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Is This The End?
 Bankruptcy and Liquidation do not have to be the end for the
entrepreneur.
 Many entrepreneur have failed many times before finally
succeeding. If failure does occur the entrepreneur should:

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 Consult with his or her relative

 Seek outside assistance from professionals, friends and business


associates.

 Try not to hang on to a venture that will continually drain


resources.

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