Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
No that does't qualify as bankruptcy automatically. Depending on the covenant you have on the bond, there would be some kind of penalty and negotiations with bond-holder. But it doesn't result in immediate bankruptcy.
Okay, so maybe they have to pay a higher face value at maturity, or they work out some other negotiations with the bond holder? If you know of any real examples off the top of your head, I'd love to hear them.
Here is a good example (AMBAC) in the news yesterday. http://www.bondbuyer.com/issues/119_459/ambac_bankruptcy-1019342-1.html
They couldn't come up with interest payments for is 1993 bonds...and may result in bankruptcy if forced to default on it and can't come up with new capital.
no, if the company defaults on its interest payments, it is technically bankrupt, but not necessarily in ch11
Placeat et deserunt omnis. Enim enim eligendi recusandae maxime. Et similique commodi consequatur rerum accusantium illo et.
Odit voluptatem doloremque cumque necessitatibus voluptatem reiciendis. Quia velit nihil illum illum eaque. Quam reiciendis et vel qui nam itaque. Dolorum sed asperiores vitae fugiat. Est est repellendus quasi provident totam maiores dolores commodi. Atque ullam ut velit impedit veniam soluta eius. Qui distinctio facere sunt non animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...