What is a debt exchange agreement?

Debt Exchange means the exchange for its outstanding debt securities or other transfer to its creditors of the 2016 Notes by Alltel.

What is a distressed debt exchange?

In a distressed debt exchange, a company that is unable to pay its financial obligations can renegotiate the terms of its debt obligations with its creditors.

Why would a company do an exchange offer?

Among other possible objectives, an exchange offer can be used to extend maturities, reduce coupon payments and, in combination with an exit consent, effectively modify covenants. An exchange offer can also allow an issuer to achieve its liability management objectives with relatively little cash outlay.

What is a debt transaction?

Debt Transaction means, with respect to Parent or any consolidated Subsidiary, any sale, issuance, placement, assumption or guaranty of funded Indebtedness (other than pursuant to this Agreement), whether or not evidenced by a promissory note or other written evidence of Indebtedness, other than Permitted Indebtedness.

Who benefits from debt for equity swaps?

Something equivalent the value of cash can also be paid instead of cash. In case of debt to equity swaps, loans are extinguished in favor of equity. In these transactions, the lender usually receives less than the face value of the debt but more than the depreciated market value. Hence, both parties are better off.

How do you buy distressed debt?

The easiest way for a hedge fund to acquire distressed debt is through the bond markets. Such debt can be easily purchased due to regulations concerning mutual fund holdings. Most mutual funds are barred from holding securities that have defaulted.

What is a distressed stock?

Distressed securities are financial instruments issued by a company that is near to—or currently going through—bankruptcy. Distressed securities can include common and preferred shares, bank debt, trade claims, and corporate bonds.

What happens when a company changes exchanges?

For the most part, when a company switches exchanges, it’s less an action than a reaction. Companies don’t elect to leave so much as they’re asked, or gently persuaded or ordered to. Look at the NYSE. Its requirements for joining are as stringent as ever.

Should I accept an exchange offer?

The rationale to accept an exchange offer is that the bondholder would be better off accepting the offer than turning it down. It is important that the exchange include attractive terms, however, because bondholders cannot be compelled to accept.

What is debt and types of debt?

The main types of personal debt are secured debt, unsecured debt, revolving debt, and mortgages. Secured debt requires some form of collateral, while unsecured debt is solely based on an individual’s creditworthiness.

How do you convert debt to equity?

how much debt is to be converted for equity?

  • how many shares in the company should be issued to satisfy the conversion (ie what is the market price for the shares)?
  • what class of shares are issued and what rights will attach to the newly issued shares?
  • Can you pay a debt with another debt?

    You can consolidate your debts if you have a good credit history and your income is sufficient to repay the consolidation loan while covering your current expenses.

    When to use the term debt vs. revolving debt?

    What is revolving debt? Revolving debt is a type of debt where you have a maximum credit line. You can keep borrowing until you reach that credit limit. As you make payments, you “free” up more room to use the credit line. With revolving debt, you don’t have to re-apply for funds later. Types of revolving debt include: Credit cards; Home equity lines of credit (HELOCs) Credit lines offered by banks . What is installment debt?

    What is between debt collection and debt recovery?

    The process starts when your customer misses a payment due. In that case,you have 30 days from the bill due to date (not the billing date) to get the

  • Besides,the grace period is over after 15 days.
  • After 30 days,the debt becomes troubled and needs a different set of skills.
  • After 60 days or less,you might go to court and file a lawsuit.