What happens now to Neo & Bee, legally? I understand that, in some jurisdictions, the creditors can start the legal liquidation of the company and the distribution of its assets, even if the CEO is in Shangri-La and the employees have all quit their jobs. Is that happening in Cyprus?
Not sure about Cyprus, but here the creditors can apply for court-ordered liquidation as long as there is both legal (balance sheet) insolvency as well as commercial insolvency.
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Investors are people who buy equity in a company.
Creditors are people who loan money or goods to a company and thus create liabilities for the company.
Creditors expect and have a legal right to be paid what they loan, including interest.
Investors have no guarantee they will ever see their money again.
When a company is liquidated, creditors have priority over investors in sharing in the proceeds.
Creditors are people who loan money or goods to a company and thus create liabilities for the company.
Creditors expect and have a legal right to be paid what they loan, including interest.
Investors have no guarantee they will ever see their money again.
When a company is liquidated, creditors have priority over investors in sharing in the proceeds.
Just in case anyone was wondering
