One common debt covenant forbids the firm issuing debt from issuing more debt in the future that
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Question:
One common debt covenant forbids the firm issuing debt from issuing more debt in the future that is senior to the debt that is currently being issued.
Does this covenant help the firm or the purchasers of the current debt?
As it puts restrictions on the firm on its future actions, Why do you think the firm would agree to such a covenant?
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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