I utilize bondholder wealth e ffects to test theories of why voluntary bank debt renegotiation happens without any … alternative hypothesis that relaxing covenants signals weakened bank monitoring. Bondholders do not react signifi cantly …

distress caused by coordination failure among creditors, and inconsistent with these effects explaining other sources of …Prior research and recent anecdotes during the financial crisis demonstrate that lack of creditor coordination can … exacerbate distress thereby illustrating the economic importance of creditor coordination effects. This study develops and …

coordination costs increase (i.e., more lenders in a syndicate). Lastly, we find a positive relation between the constructed … highlights the value of tight multidimensional interconnections among lenders in reducing coordination costs …