premium for debt seniority. Our analysis also explains why companies may engage in repeated Chapter 11 bankruptcy filings (a … junior debt claims. In this paper, we show that the scope for sequential renegotiation may reduce and even eliminate the …

This article reviews the origin and spread of the distressed debt problem in the transition region. We argue that while … the crisis was triggered abroad, the current high level of distressed debt in various transition countries mainly reflects … home-grown vulnerabilities. As in the West, the root causes of the debt problem were abundant and cheap funding and a …