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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