|
Debt Restructuring
Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations. Replacement of old debt by new debt when not under financial distress is called " refinancing". Out-of-court restructurings, also known as s, are increasingly becoming a global reality. Motivation Debt restructuring involves reduction of debt and an extension of payment terms and is usually less expensive than bankruptcy. The main costs associated with debt restructuring are the time and effort spent negotiating with bankers, creditors, vendors, and tax authorities. In the United States, small business bankruptcy filings cost at least $50,000 in legal and court fees, and filing costs in excess of $100,000 are common. By some measures, only 20% of firms survive Chapter 11 bankruptcy filings. Historically, debt restr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Distress
Financial distress is a term in corporate finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty. If financial distress cannot be relieved, it can lead to bankruptcy. Financial distress is usually associated with some costs to the company; these are known as ''costs of financial distress''. Cost A common example of a cost of financial distress is bankruptcy costs. These direct costs include auditors' fees, legal fees, management fees and other payments. Cost of financial distress can occur even if bankruptcy is avoided ( indirect costs). Financial distress in companies requires management attention and might lead to reduced attention on the operations of the company. Another source of indirect costs of financial distress are higher costs of capital as usually bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Haircut (finance)
In finance, a haircut is the difference between the current market value of an asset and the value ascribed to that asset for purposes of calculating regulatory capital or loan collateral. The amount of the haircut reflects the perceived risk of the asset falling in value in an immediate cash sale or liquidation. The larger the risk or volatility of the asset price, the larger the haircut. For example, United States Treasury bills, which are relatively safe and highly liquid assets, have little or no haircut, whereas more volatile or less marketable assets might have haircuts as high as 50%. Lower haircuts allow for more leverage. Haircut plays an important role in many kinds of trades, such as repurchase agreements (referred to in debt-instrument finance as "repo" but not to be confused with the concept of repossession denoted by that term in consumer finance) and reverse repurchase agreements ("reverse repo" in debt-instrument finance). In mass media, as well as in economi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy And Insolvency Act
The ''Bankruptcy and Insolvency Act'' (BIA; ) is one of the statutes that regulates the law on bankruptcy and insolvency in Canada. It governs bankruptcies, consumer and commercial proposals, and receiverships in Canada. It also governs the Office of the Superintendent of Bankruptcy, a federal agency responsible for ensuring that bankruptcies are administered in a fair and orderly manner. Purpose and scope The nature of the ''Act'' within Canada's legal framework governing insolvency was described by the Supreme Court of Canada in '' Century Services Inc. v. Canada (Attorney General)'': With certain exceptions, the ''Act'' covers a wide range of entities: :* it covers anyone who has resided or carried on business in Canada :* it "includes a partnership, an unincorporated association, a corporation, a cooperative society or a cooperative organization, the successors of a partnership, of an association, of a corporation, of a society or of an organization and the heirs, execu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Defendant
In court proceedings, a defendant is a person or object who is the party either accused of committing a crime in criminal prosecution or against whom some type of civil relief is being sought in a civil case. Terminology varies from one jurisdiction to another. In Scots law, the terms "accused" or "panel" are used instead in criminal proceedings and "defender" in civil proceedings. Another term in use is "respondent". Criminal defendants In a criminal trial, a defendant is a person accused ( charged) of committing an offense (a crime; an act defined as punishable under criminal law). The other party to a criminal trial is usually a public prosecutor, but in some jurisdictions, private prosecutions are allowed. Criminal defendants are often taken into custody by police and brought before a court under an arrest warrant. Criminal defendants are usually obliged to post bail before being released from custody. For serious cases, such as murder, bail may be refused. Defendants ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Holdout Problem
In finance, a holdout problem occurs when a bond issuer is in default or nears default, and launches an exchange offer in an attempt to restructure debt held by existing bond holders. Such exchange offers typically require the consent of holders of some minimum portion of the total outstanding debt, often in excess of 90%, because, unless the terms of the bond provide otherwise, non-consenting bondholders will retain their legal right to demand repayment of their bonds at par (the full face amount). Bondholders who withhold their consent and retain their right to seek the full repayment of original bonds, may disrupt the restructuring process, creating a situation known as the holdout problem. The contractual terms for obligating all bondholders to accept a restructuring approved by some supermajority is typically spelled out in what are known as Collective Action Clauses, or CACs. In some jurisdictions, CACs or their equivalents are required under local law, but this is n ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sovereign Nation
A nation state, or nation-state, is a political entity in which the state (a centralized political organization ruling over a population within a territory) and the nation (a community based on a common identity) are (broadly or ideally) congruent. "Nation state" is a more precise concept than "country" or "state", since a country or a state does not need to have a predominant national or ethnic group. A nation, sometimes used in the sense of a common ethnicity, may include a diaspora or refugees who live outside the nation-state; some dispersed nations (such as the Roma nation, for example) do not have a state where that ethnicity predominates. In a more general sense, a nation-state is simply a large, politically sovereign country or administrative territory. A nation-state may be contrasted with: * An empire, a political unit made up of several territories and peoples, typically established through conquest and marked by a dominant center and subordinate peripheries. * A ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Government Bond
A government bond or sovereign bond is a form of Bond (finance), bond issued by a government to support government spending, public spending. It generally includes a commitment to pay periodic interest, called Coupon (finance), coupon payments'','' and to repay the face value on the Maturity (finance), maturity date. For example, a bondholder invests $20,000, called face value or principal, into a 10-year government bond with a 10% annual coupon; the government would pay the bondholder 10% interest ($2000 in this case) each year and repay the $20,000 original face value at the date of maturity (i.e. after 10 years). Government bonds can be denominated in a foreign currency or the government's domestic currency. Countries with less stable economies tend to denominate their bonds in the currency of a country with a more stable economy (i.e. a hard currency). All government bonds carry Default (finance), default risk; that is, the possibility that the government will be unable to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supermajority
A supermajority is a requirement for a proposal to gain a specified level of support which is greater than the threshold of one-half used for a simple majority. Supermajority rules in a democracy can help to prevent a majority from eroding fundamental rights of a minority, but can also hamper efforts to respond to problems and encourage corrupt compromises at times when action is taken. Changes to constitutions, especially those with entrenched clauses, commonly require supermajority support in a legislature. In consensus democracy the supermajority rule is applied in most cases. __TOC__ History The first known use of a supermajority rule was in juries during the 100s BC in ancient Rome. In some cases, two thirds of jurors had to confirm they were ready to take a decision before the matter went to a simple majority vote. Pope Alexander III introduced the use of supermajority rule for papal elections at the Third Lateran Council in 1179. In the Democratic Party of the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sovereign Bond
A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest, called coupon payments'','' and to repay the face value on the maturity date. For example, a bondholder invests $20,000, called face value or principal, into a 10-year government bond with a 10% annual coupon; the government would pay the bondholder 10% interest ($2000 in this case) each year and repay the $20,000 original face value at the date of maturity (i.e. after 10 years). Government bonds can be denominated in a foreign currency or the government's domestic currency. Countries with less stable economies tend to denominate their bonds in the currency of a country with a more stable economy (i.e. a hard currency). All government bonds carry default risk; that is, the possibility that the government will be unable to pay bondholders. Bonds from countries with less stable economies are usually considered t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wells Fargo
Wells Fargo & Company is an American multinational financial services company with a significant global presence. The company operates in 35 countries and serves over 70 million customers worldwide. It is a systemically important financial institution according to the Financial Stability Board, and is considered one of the "Big Four (banking)#United States, Big Four Banks" in the United States, alongside JPMorgan Chase, Bank of America, and Citigroup. The company's primary subsidiary is Wells Fargo Bank, N.A., a National bank (United States), national bank that designates its Sioux Falls, South Dakota, site as its main office (and therefore is treated by most U.S. federal courts as a citizen of South Dakota).Rouse v. Wachovia Mortgage, FSB', 747 F.3d 707 (9th Cir. 2014) (citing cases on each side of circuit split and joining majority rule that a national bank is only a citizen of the state in which its main office is located). It is the List of largest banks in the U ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jeffrey Sachs
Jeffrey David Sachs ( ; born November 5, 1954) is an American economist and public policy analyst who is a professor at Columbia University, where he was formerly director of The Earth Institute. He worked on the topics of sustainable development and economic development. Sachs is director of the Center for Sustainable Development at Columbia University and president of the UN Sustainable Development Solutions Network. He is an SDG Advocate for United Nations (UN) Secretary-General António Guterres on the Sustainable Development Goals (SDGs), a set of 17 global goals adopted at a UN summit meeting in September 2015. From 2001 to 2018, Sachs was special advisor to the UN Secretary General, and held the same position under the previous UN Secretary-General Ban Ki-moon and prior to 2016 a similar advisory position related to the earlier Millennium Development Goals (MDGs), [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Shareholder
A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation. Shareholders may be referred to as members of a corporation. A person or legal entity becomes a shareholder in a corporation when their name and other details are entered in the corporation's register of shareholders or members, and unless required by law the corporation is not required or permitted to enquire as to the beneficial ownership of the shares. A corporation generally cannot own shares of itself. The influence of shareholders on the business is determined by the shareholding percentage owned. Shareholders of corporations are legally separate from the corporation itself. They are generally not liable for the corporation's debts, and the shareholders ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
