In 2008, the united states began to witness one of the worst recessions since the 1930s. the collapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entities. severe liquidity shortfalls in the united states as well as other global markets led to a serious credit crisis. during the credit crisis of 2008–2009, several banks and other businesses went through a reorganization process or were forced to liquidate. consider the following example: in december 2008, hawaiian telcom took action to strengthen its balance sheet by reducing debt. although the company continued to operate, its creditors could not collect their debts or loan payments that were due prior to the legal action that the company took. however, on november 30, 2009, the company had $75 million in cash on hand. this is an example of: reorganization liquidation