Word.ws English Dictionary

Texas two-step

Texas two-step noun: a two-step bankruptcy strategy under US bankruptcy law in which a solvent parent company spins-off liabilities into a new company, and then has that new company declare bankruptcy.

Noun

Texas two-step (plural Texas two-steps)

  1. A two-step bankruptcy strategy under US bankruptcy law in which a solvent parent company spins-off liabilities into a new company, and then has that new company declare bankruptcy.
    • This is called the “Texas two-step.” In its extreme form it sounds like very bad cheating: You can’t really put all the liabilities and none of the money in the box; that is just a way to defraud victims, and surely they’d find a way to do something about it. But a milder form of the Texas Two-Step...Levin, Matt (1 February 2023), “Johnson & Johnson’s Bankruptcy Didn’t Work”, in Money Stuff, Bloomberg

Forms of Texas two-step

pluralTexas two-steps

Questions about Texas two-step

What does Texas two-step mean?
Texas two-step means a two-step bankruptcy strategy under US bankruptcy law in which a solvent parent company spins-off liabilities into a new company, and then has that new company declare bankruptcy.
What part of speech is Texas two-step?
Texas two-step is a noun.
What is the plural of Texas two-step?
The plural of Texas two-step is Texas two-steps.

Words near Texas two-step in the dictionary

  1. Texas toothpicks
  2. Texas tower
  3. Texas towers
  4. Texas Triangle
  5. Texas trinity
  6. Texas two-step
  7. Texas two-steps
  8. Texas umbrella tree
  9. Texas umbrella trees
  10. Texas wedge
  11. Texas wedges

Source and license

Adapted from Wiktionary: Texas two-step (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.

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Cite this entry: “Texas two-step.” Word.ws, https://word.ws/texas_two-step. Based on Wiktionary, CC BY-SA 4.0.