Being the first and only Teladi Sector located next to a Paranid Sector, the Teladi opened this sector for massive amounts of trade, but trade with the Paranid was not a sensible decision. Turnover was low and few Paranid passed through sectors with only the odd ship coming in for supplies. The Teladi Chairman for this sector noticed they were slowly going into debt and so pulled out most of the high tech factories. The sector was then dubbed Bad Debt and the name has since stuck. Although relations between the two races are improving, trade is increasing at a minimal rate. Because of this debt, the Teladi trade dock is relatively quiet, with cargo bays remaining empty and most market sections closed off ans in a state of decay.