This paper develops a model with the novel feature that firms can renegotiate debt both in and outside distress. We … show that this feature is crucial for debt renegotiation models to explain corporate policies and debt prices. Specifically … debt control premiums, and predicts realistic renegotiation timing policies. Incorporating both renegotiation events also …

price them into the ex-ante credit spreads. Using a realistic dynamic bargaining model of reorganization, we show that the … off-equilibrium threat of costly renegotiation can lead to lower leverage, even with liquidation in equilibrium. If …

We study capital structure negotiation and cost of debt financing between sponsors and lenders using a sample of more … level of leverage …

I study the impact of bank loan renegotiation on the design of financial contracts. Debt renegotiation can be …

agreements in order to safeguard creditors' interest. Debt agreements with Financial covenants might sometimes be appealing for … borrowing firms as they offer better credit facilities that are not usually found in normal debt contracts. However, everything …