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"I wouldn't want to be a debt holder," he says.
I can't find an equity or debt holder that bears that loss.
(The other major debt holder was Ronald Burkle's firm, the Yucaipa Companies, whose stake was somewhat smaller, though many believed Burkle was also keen to own Barneys).
Most important, while angels and sharks who take equity are likely to be with you forever, the debt holder eventually goes away.
He would name only the Service Employees International Union, which represents New York hospital workers and which he described as a "large debt holder" in Sinclair.
Presto — the risk of absorbing the loss from a default shifts to the person selling the swap from the original debt holder.
Similar(45)
Naturally, debt holders often object to such changes.
The first investors to be repaid are secured debt holders, then senior bond investors, followed by subordinated debt holders.
So the financial losses to debt holders could be on the order of $1 trillion.
Evidence from the 1980s shows that private equity often took advantage of other debt holders.
"The fact remains, though, that the exchange is not binding on all debt holders.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com