unpaid

The supplier of oil filters and windshield wipers has some $6 billion in balance-sheet debt in addition to its off-balance-sheet financing, primarily from factoring, a form of short-term borrowing backed by its customers’ unpaid invoices.

“If there isn’t enough money in the estate to cover the debt, it usually goes unpaid.”

“Aetna chose to sue Mr. Young to avoid paying him the millions of dollars of unpaid claims they owed,” Cohen said.

This group of loans has an unpaid balance of around $1.5 trillion.

The auto-parts supplier relied heavily on factoring, a form of short-term borrowing backed by customers’ unpaid invoices, The Wall Street Journal has previously reported.