Question: A firm is experiencing a temporary period of financial distress
A firm is experiencing a temporary period of financial distress as the result of a hurricane that has hit its local area. Because many of the firm’s customers have been severely hurt by the hurricane, they are unable to pay their debts to the firm. This stoppage of cash inflows has left the firm temporarily unable to pay its own bills. What options do the firm’s creditors have with respect to getting paid?
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