black-ink bankruptcy; insolvency despite accounting profits
A business term for a company that goes bankrupt despite showing a profit on paper, typically because of cash-flow problems or delayed receivables.
It is not uncommon for rapidly growing companies to go bankrupt despite being profitable on paper.
They fell into black-ink bankruptcy due to delays in collecting accounts receivable.
倒産 is a general term for bankruptcy or business failure, while 黒字倒産 specifically refers to insolvency that occurs even when the company is profitable on paper.
黒字 means 'in the black' or 'profitable'. 黒字倒産 is a compound where the company is in the black yet still goes bankrupt.
Compound of 黒字 (profitable, literally 'black figures') and 倒産 (bankruptcy). The term highlights the paradox of failing despite being in the black.