One thing repelling potential raiders is some uncertainty over the corporate capital gain tax that would be owed in a liquidation.
The social and economic consequences if they end up in liquidation would be grave, he says.
"We feel it is likely that New Century just used up its last option to avoid collapse, and believe a bankruptcy filing or liquidation may well be announced in the next week or two, " wrote JPMorgan analyst Andrew Wessel in a research note Friday.
Still, the dip in the gold price appeared to be mainly liquidation from short-term traders who had expected more aggressive Fed action.
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In the case of John Ramig, however, whether his advances to his corporation represented debt or equity would mean the difference between taking an ordinary worthless debt deduction under Section 166 when the debt went bad, or be stuck with a capital loss upon liquidation in some future year.
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As a result, they must either be held until liquidation or traded from investor to investor in secondary transactions.
This time the club won a temporary 28 day reprieve to allow the debt to be paid in full - or for the club itself to seek liquidation.
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Longer cycles of Venture capital, and the practice of partial liquidation in late capital rounds (that seems to be kicking off) are a start.
John Paulson, currently the most famous gold speculator, has also reasserted his engagements, so any liquidation on his part cannot be regarded as a declaration in favor of a sell-off.
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The plans also will help inform the FDIC on how to lessen the systemic ripple effects in the event one of these companies must be resolved under the new Orderly Liquidation Authority.
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"It would appear to be some large-scale bank liquidation--not a specific bank but banks in general, " said Addison Armstrong, director of market research for Tradition Energy in Stamford, Connecticut.
All this suggests that forced liquidation was a factor in the market's demise but that the worst may be over sooner rather than later.
In the worst case, your money could be tied up for an extended time if you wait for liquidation.
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