Figure 1
The single line graph has the vertical axis labeled “Firm Value” and the horizontal axis labeled “Time”. A curved line begins on the left at a moderate positive value, rises slightly to a peak, and then gradually declines as it moves to the right, eventually crossing a horizontal line labeled “Value Break” and continuing downward into negative territory. The “Value Break” is shown as a thick horizontal line across the graph, separating the upper and lower regions. Two shaded vertical regions appear on the far left and far right sides of the graph. Across the top, a double-headed arrow spanning between the shaded regions is labeled “Zone of Insolvency”. A point is marked on the horizontal axis slightly left from the center and is labeled “Trigger”. The gap from the left shaded region to the trigger point is labeled “Twilight Zone slash Informal Turnaround”. Farther to the right, near where the declining curve approaches and passes below the “Value Break”, a label “Viability Component” appears along the time axis with a small filled circular marker. The dashed lines are connected to the curve from the viability component towards the value break and lower right ends. A vertical dashed line is drawn at the point near the right of the curve in the right shaded region, and the horizontal gap from the trigger point to dashed line in the right shaded region is labeled “Formal Turnaround”.Adaption of Rosslyn-Smith (2018): commencement of reorganisation in relation to the zone of insolvency