financial distress

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Tags: finance

A condition where a company cannot meet or has difficulty paying off its financial obligations to its creditors. The chance of financial distress increases when a firm has high fixed costs, illiquid assets, or revenues that are sensitive to economic downturns.
(Read more: http://www.investopedia.com/terms/f/financial_distress.asp#ixzz2KKSmiLmh)

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