Although most companies that file for bankruptcy do so because of their deteriorating financial position, companies increasingly are seeking bankruptcy protection to avoid litigation and hostile takeovers. Give examples of how bankruptcy can be used to avoid litigation.

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The Answer of  Although most companies that file for bankruptcy do so because of their deteriorating financial position, companies increasingly are seeking bankruptcy protection to avoid litigation and hostile takeovers. Give examples of how bankruptcy can be used to avoid litigation.

Although Most Companies That File for Bankruptcy Do So Because