This article provides empirical evidence on the determinants of multiple bank loan renegotiations in Europe over the last decade. I find that renegotiations differ from those in US in terms of frequency, amended terms, and first occurrence. Multiple renegotiations concern very large loans which...

I study the impact of bank loan renegotiation on the design of financial contracts. Debt renegotiation can be beneficial for borrowers and lenders but its impact on the design of financial contracts is less clear. However, contract design is crucial for borrower's investment, operating and...

We investigate the relationship between borrower quality and the structure of the pool of banks. First, we develop a theoretical model where the size of the banking pool is a credible signal of firm quality. We argue that better borrowers seek to disclose their quality in a credible way through...