texas two-step
Word Rarity
Uncommon
Frequency: Zipf frequency 4.68 in modern English
24
Scrabble Score
12
Letters
5
Syllables
8
Unique Chars
Meaning
noun
A two-step bankruptcy strategy under US bankruptcy law in which a solvent parent company spins-off liabilities into a new company, and then has that new company declare bankruptcy.
Example Sentences
- "This is called the “Texas two-step.” In its extreme form it sounds like very bad cheating: You can’t really put all the liabilities and none of the money in the box; that is just a way to defraud victims, and surely they’d find a way to do something about it. But a milder form of the Texas Two-Step is that you put the liabilities in the box, put the box in bankruptcy, but have the parent company guarantee its product liabilities."