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Creditors, though, are not regarded as the members of a company, yet the role they play in maintaining a company cannot … virtue of lending money by the creditors to the company, the company becomes debtor to the creditor and hence is under an … obligation to take proper care of the interest of the creditors. Previously, there were no such enactments that provide relief to …
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I propose a theoretical framework in which lenders may suffer repayment preference shocks that encourage early and costly termination of a loan contract. Covenant-lite loans limit the circumstances in which lenders can withdraw or renegotiate credit agreements, and thus insulate lenders from...
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In the recent theoretical literature on lending risk, the coordination problem in multi-creditor relationships have been analyzed extensively. We address this topic empirically, relying on a unique panel data set that includes detailed credit-file information on distressed lending relationships...
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