The judge in the receivership case has three months to decide whether Samsung Motors ought to be liquidated, or whether its debt should be reorganized and new management appointed.

CNN: THE BIG DEAL THAT FAILED

And so I think what happened is in the last four months of 2008 they literally it was estimated as a trillion dollars these leveraged debt funds were liquidated, that they dumped about nine trillion bonds.

FORBES: Intelligent Investing

Since cities can't be liquidated, Stockton has attempted to restructure some debt by renegotiating labor contracts and cutting the health benefit for retirees, but creditors argued that by ignoring bond debt they haven't created a plan that shares the pain equitably, as required under bankruptcy code.

NPR: Stockton Bankruptcy Decision Only The Beginning