▪ A company cannot meet its debt obligations / interest payments. ▪ Creditors can accelerate debt payments and force the company into bankruptcy. ▪ An acquisition has gone poorly, or a company has just written down the value of its
assets steeply and needs extra capital to stay afloat (see investment banking industry). ▪ There is a liquidity crunch, and the company cannot afford to pay its vendors or suppliers.
