distressed companies

A distressed company is one facing significant financial difficulties that threaten its ability to continue operations. This can happen due to declining sales, high debt, poor management, or external economic factors. Such companies may struggle to pay their bills, meet debt obligations, or maintain profitability. They often seek restructuring, support from creditors, or legal protections like bankruptcy to address these issues. The goal is to stabilize the business, reduce financial pressure, and find a path to recovery or a managed exit.