Hege, U.; Mella-Barral, P. - CentER for Economic Research, Universiteit van Tilburg - 1999
Debt with many creditors is analyzed in a continuous-time pricing model of the levered firm. We specifically allow for debtor opportunism vis-a-vis a non-coordinated group of creditors, in form of repeated strategic renegotiation offers and default threats. We show that the creditors' initial...