Financial Restructuring and Bankruptcy
Free FINRA Series 79 (Investment Banking Representative) lesson in Mergers and Acquisitions, Tender Offers and Financial Restructuring. 12 min read, ~1,753 words.
The waterfall pays senior secured first, then junior secured, then unsecured (trade), then mezzanine, then preferred stock, then common stock last. Credit agreements govern loans; indentures govern bonds; both set repayment, prepayment, events of default, and covenants. Chapter 11 reorganizes the business; the debtor stays in control as debtor-in-possession (DIP)...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- C27
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