Collateral Famous Quotes

Crucially, most of the existing Harrah’s debt did not have to be refinanced. Because it was not secured by any collateral, suddenly Harrah’s could issue senior debt backed by the company’s assets. It would do so in the LBO deal, pushing $4.5 billion of existing debt to the bottom of the totem pole in a $25 billion debt stack. This was cruel. Those existing unsecured bonds crashed in price as they were last in line to be repaid. But the maneuver allowed Apollo and TPG to issue new debt more cheaply. And it illustrated one of the key legal principles that would echo through this case: Debtholders’ relationship with the company remains strictly contractual. Any rights they have must be bargained for and embedded in documents. The management and board of a company, in contrast, have fiduciary duties which dictate that they maximize shareholder value.

attempted to slow him down and get some collateral information. “Who’s your banker?” Ryan mentioned a name I’d never heard, but he attached it to a firm with which I had some connections. The firm only works with families that have an investable net worth of over $50 million and has a genuine interest in helping them navigate the destruction to family wealth and well-being caused by addictions and other mental health issues. I