In case of multiple creditors a coordination problem can arise when the borrowingfirm runs into financial distress … on theirloans. We develop a model of creditor coordination where a large creditor movesbefore a continuum of small … information. We derive conditions under which pure herdingbehavior is to be expected. -- creditor coordination ; global games …

diminishes creditor coordination failure whenever the firm is expected to be in distress. -- global games ; creditor coordination …