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Alternative two signifies in its place which the new project and the present agency Dwell two individual lives. In case the project will not be productive, project creditors don't have any (or quite minimal) claim within the sponsoring agency’s assets and income flows.

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If the project isn't profitable, then each of the remaining assets and money flows can serve as a source of repayment for every one of the creditors (outdated and new) in the combined entity (present firm in addition new project).

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