It is a financial ratio that indicates the percentage of a company's assets and their debts. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load.
A rearrangement or modification made to the debt, operations or structure of a company.
Debt restructuring is a process that allows an entity which is undergoing cash flow problems and distress financially. Restructuring assist the entity to improve cash flow and restore liquidity so that it can continue its operations and increase the revenue.
The debt service coverage ratio (DSCR), also known as "debt coverage ratio," is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity's ability to produce enough cash to cover its debt payments.
Debt Swap is a kind swap transaction agreement between two entities under which they exchange the debts amongst them. The key objective of the debt swap is avoiding bankruptcy, reorganizing debts, or gaining a more favorable repayment schedule.
Debtor-In-Possession Financing(DIP Financing)Financing arranged by a company while under the Chapter 11 bankruptcy process. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims.
Event of default refers to the occurrence of an event which allows the lender to demand repayment of the loan in advance of its normal due date There are two types of event of default: actual default, i.e. the failure to pay principal or interest when it falls due for payment; and prospective default, when payment is not yet due, but it is clear that it will not be capable of being paid when it does fall due.
A provision that voids a bond when the borrower sets aside cash or bonds sufficient enough to service the borrower's debt.
A mortgage provision indicating that the borrower will be given the title to the property once all mortgage terms are met. The defeasance clause is not required in states using property liens as collateral for a mortgage. In this sense, the clause is a substitute for collateral.
It is the amount of interest that is added to the principal balance of a loan when the contractual terms of that loan allow for scheduled payment to be made that is less than the interest due. When a loan's principal balance increases because of deferred interest, it is known as negative amortization.
A dividend pusher is a term whereby the coupon is mandatory if remuneration is given to another specified security or class of securities within a specified period of time.
Dividend stopper is a term which states that the issuer will not, with a specified period of time, pay a coupon on another security or class of securities if it does not pay a dividend on the security in question.
Its a kind of auction where an auctioneer starts asking bid at higher price and gradually the bid is lowered until some participants is willing to accept the price asked by the auctioneer.