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How the Balance of Power Is Changing in the Resolution of Corporate Financial Distress

Reynolds Holding

Among those who study corporate financial distress and reorganization, the notion that senior lenders are in control is deeply ingrained. Celebrated papers in the law and corporate finance literatures attribute lender influence during periods of distress to blue-sky contracting practices. [1] 917 (2003); Douglas G. 751 (2002).

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Data Update 1 for 2023: Setting the table!

Musings on Markets

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive. Standard deviations in equity and firm value 4.