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.
Compound of 黒字 (profitable, literally 'black figures') and 倒産 (bankruptcy). The term highlights the paradox of failing despite being in the black.