applicable to credit risk assessment. However, whilst the “downside risk” equates with the debt write-off plus transaction costs … sought greater efficiencies in credit and risk assessment procedures, especially with personal lending products. In the same … debt recoveries adequately, however, can lead to further pressure on profits.This paper uses a case study approach to …

This paper develops a new model of debt renegotiation in a structural framework, that accounts for both taxes and … bankruptcy costs. We investigate situations where the manager can optimally (on behalf of the equity holder) impose a permanent … coupon reduction to creditors, given that the new coupon is chosen such that debt value remains constant. Our result shows …

We analyze the role of debt in persuading an entrepreneur to pay out cash flows, rather than to divert them. In the … first part of the paper we study the optimal debt contract -- specifically, the trade-off between the size of the loan and … the repayment -- under the assumption that some debt contract is optimal. In the second part we consider a more general …

We analyze the role of debt in persuading an entrepreneur to pay out cash flows, rather than to divert them. In the … first part of the paper we study the optimal debt contract -- specifically, the trade-off between the size of the loan and … the repayment -- under the assumption that some debt contract is optimal. In the second part we consider a more general …

Either lending must be secured or otherwise some form of default or bankruptcy rules are required to provide a …

Farmer bankruptcies, bankruptcy rates, and related issues are explored from the beginning of modern bankruptcy …. Bankruptcy data for Chapters 7, 11, and 13 exist for farmers for the 1899-1980 period, but there are no Chapter 7, 11, or 13 … farmer bankruptcy data available beginning in 1980. However, data are available for the 1986-2002 period for Chapter 12, the …

back up a loan. One theory holds that issuing secured debt allows the firm's owners to reduce expected payments in the … event of bankruptcy to so-called "non-adjusting" creditors, who cannot or do not adjust the size of their claims in response … secured debt solves an underinvestment problem: the firm may only be able to finance a growth opportunity if it offers new …