Well, this goes in this category but not sure which of the three forum to post it. I guess this one's as good as the others.
I am considering acquiring an existing but bankrupt business. The business is still in operation and, as long as the cash flow is positive, this bankrupt company could continue indefinately, I suppose - at least as long as the creditors allow it to.
What are my options with regard acquiring it? Being bankrupt simply means that liabilities exceed assets. So, if I buy it, what am I paying for? I am buying a debt - doesn't seem very logical! Could the owners just sign the business over to me so that I assume their debt and they are relieved of the obligation? Might they actually pay me to take over their obligations?
I've never dealt with a bankrupt business before so invite observations and suggestions.