Search results
In a distressed debt exchange (DDE), a company proposes that existing debt holders take a haircut on their principal amount in exchange for moving up in payment priority in the form of secured debt.
Distressed Exchange means, in connection with any Collateral Debt Obligation (or one or more Defaulted Obligations), an Offer or other debt restructuring has occurred, as reasonably determined by the Collateral Manager, pursuant to which the obligor of such Collateral Debt Obligation (or Defaulted Obligation) has issued to the holders of such Co...
Distressed exchanges have been a common solution to addressing the issue of over-leveraged balance sheets in the European leveraged finance market over the past year. A distressed exchange is one of three events which Moody's defines as a default for the purpose of its default rate statistics.
9 kwi 2021 · Distressed exchanges remain the leading reason for default, accounting for nearly 60% of the global total. The 12-month trailing count of distressed exchanges is at its highest point since 2010, with 81 since April 2020 (see chart 1).
What is a DDE or distressed restructuring, and what are the rating implications? GCR typically considers a DDE to be an early refinancing of debt by a distressed entity that unduly prejudices investors or creditors. Investors usually accept these agreements if a normal post-enforcement workout
20 paź 2023 · Distressed Exchanges Continue To Drive Defaults. In September, 55% of the defaults were a result of distressed exchanges. With six additions, the total count of distressed exchanges increased to 52, its highest year-to-date tally since 2009 (see chart 3).
27 kwi 2023 · Almost three-quarters of US corporate debt defaults last year were out-of-court “distressed exchanges”, where a company offers creditors assets worth less than their original bonds or loans,...
