According to wikipedia
Wikipedia shows general expenses as cost of financial distress
1. Auditor's fees
2. Legal fees
3 management fees
In next para, I am thinking, wikipedia is saying deep words regarding the interest of creditors and interest of shareholders.
* Important point in Financial Distress
Suppose total liability is $ 100 in which shareholder's equity is $ 60 and debt equity is $ 40. But market value of company is just $ 20 in market. But, if management sees, if we invest company's all asset in risky project, company's value may increase up to $ 40 dollars. But after taking this risk, if probability of loss of $ 10 out of $ 20, then it will be also big financial distress because risky projects are not in the interest of creditors.
New way to increase the value of Company and Relieving in case of Financial Distress
1. Adjustment in financial statement.
2. Debt Restructuring is the technique in which company talks with creditors for reducing and renegotiate for solving this financial distress.
3. Re-organization of their group structure by evaluating and analyzing their core and non-core assets.
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