In case of multiple creditors a coordination problem can arise when the borrowingfirm runs into financial distress …. Even if the project's value at maturity is enoughto pay all creditors in full, some creditors may be tempted to foreclose … on theirloans. We develop a model of creditor coordination where a large creditor movesbefore a continuum of small …

creditors the option to delay their foreclosure decision rather than obliging them to simultaneous actions as suggested by … diminishes creditor coordination failure whenever the firm is expected to be in distress. -- global games ; creditor coordination …

positive association when financial reporting quality or investor sophistication is low. While creditors price both pessimistic …

effects of bankruptcy announcements on creditors using a unique database. On average, creditors experience severe negative … abnormal equity returns and increases in CDS spreads. In addition, creditors are more likely to suffer from financial distress … later. These effects are stronger for industrial creditors than financials. Simulations calibrated to these results indicate …