accounting and tax implications of a debt-to-equity swap: United States of America, United Kingdom, France, Spain, Switzerland, Japan, Canada, West Germany -- The debt conversion programme in Argentina -- Boliv
A debt/equity swap works essentially in the opposite manner: debt is exchanged for a pre-determined amount of stock. After the swap takes place, part or all of the one asset class will be phased out and everyone who participated in the swap will now participate in the new or growing asse...
1. Debt to Equity Swap (DES) is a widely adopted restructuring strategy for financially distressed firms, employed both during insolvency proceedings and in pre-insolvency restructuring phases. DES...
Sustainability and green finance are becoming increasingly essential in our effort to tackle environmental challenges. Debt-for-Nature Swap financing represents a novel and comprehensive approach that converges with these principles, offering a unique wa
The ability of cities to respond to revenue shortfalls also depends on their ability to raise tax rates, which are themselves constrained in some states. For example, California and Massachusetts both passed referenda that severely limit the ability of communities to adjust tax rates.Bradbury, Mayer...
while President Biden seems likely to renew calls for higher taxes only on top earners. Extending these tax cuts would add another $3 trillion to the deficit over the 2024–33 period, excluding debt-service costs; this represents roughly 1% of GDP annually.12Given the January 1, 2025, expira...
However, it’s important to recognize that debt settlement can have negative implications on your credit report. When you settle a debt, it typically results in a “settled” status being reported on your credit report, which can signal to potential lenders and creditors that you were unable to...
In our model setting, a firm's optimal debt structure is driven by the trade-off among tax shield benefits, bankruptcy costs, and debt overhang costs. To further emphasize the main implications of the interaction between debt heterogeneity and future growth opportunities, on the one hand, we co...
Explain what is meant by a debt for nature swap. How do they contribute to the production of public goods?Public Goods:Public goods are products in free markets. Firms in free markets may not provide the goods since they may find it difficult to ch...
For example, Mann (2018) shows that court decisions not to recharacterize assets enhance patenting firms’ access to credit and innovation. Li et al. (2016) use the staggered introduction of anti-recharacterization laws to explain the relative importance of financial frictions and the tax benefits...