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
Ah yes - Jorge and I were talking about creditors forcing their hand, not investors:) I think it's safe to say that there are plenty of creditors left (not least of which are employees who are owed salaries who, in most places, become preferred creditors in the wake of insolvency) who have a marked interest in forcing this matter and possibly, maybe, creating some residue for the bag-holders.
Its 100% clear that you guys are referring to creditors. I just made the distinction clear to our novice friends (like me) and also the point that if you are an investor you take the risk (which in my book is both correct and fair).
On the NEO front though, the interesting thing now is how many creditors have moved forward (to ask their money). I for sure hope that the staff at least did.