Stadler, Manfred; Schuele, Tobias - In: Economics Bulletin 4 (2005) 12, pp. 1-7
In case of multiple creditors a coordination problem can arise when the borrowing firm runs into financial distress. Even if the project's value at maturity is enough to pay all creditors in full, some creditors may be tempted to foreclose on their loans. We develop a model of creditor...
