In his budget speech in February the finance minister, Arun Jaitley, promised a new bankruptcy code within a year to make it easier for banks to wrest control of debt-ridden companies from their owners.
Connecticut Development Authority, Pollution Control, $62 million of debt securities for the Connecticut Light and Power Company Project.
But critics, even some who concede the control function of debt, argue that the costs of leverage outweigh the benefits.
This is sometimes called "laddering" your debt, and helps the borrower feel more actively in control of the debt.
Mr. Icahn, his companies and investment funds used "their position of power and inside information to sell their equity interests and essentially convert them into a potentially controlling" amount of debt because the notes allowed Mr. Icahn to gain control of Blockbuster "during and after it emerged from bankruptcy," according to the filing.
Yes, the clubs are in control of their debt.
But it is control of the debt -- not the stock -- that Mr. Malone will need if he is to be an architect of Telewest's restructuring.
This will include how they communicate, how they propose to help people regain control of their debt, and how sympathetic they are to each borrower's situation.
Owning all the shares would still not give him control of that debt, and it is understood that Sports Direct has looked at paying back the bondholders directly.
Perry's purchase of roughly $300 million in Barneys' credit gave him control of the debt and therefore, potentially, the equity if Istithmar decided to unload Barneys.
Control of the debt could put Japonica in a strong position to get its reorganization proposal approved by creditors of the company, which sells the Sunbeam and Oster brands.
