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"Vendors tightened credit or declined to extend terms" after WorldCom disclosed its accounting problems last month, Ms. Goldstein said.
Vendors, for instance, often decline "to extend terms to struggling retailers when cash flow comes under pressure," he wrote.
"When the market was softer, an insurer may have given one client a $500,000 rolling credit and said you can extend terms out to 120 days," he said.
The point is, if this is permitted, then there is no limit to the ability to extend terms, and that is precisely contrary to what the framers had in mind when they worried about this problem originally.
On Sept. 4, the company announced that it amended its bank credit facility to extend terms on its obligations and loosen certain covenants.
Nor would he have missed the real argument that has been made against the proposal that he advanced in the New York Times (to extend terms).
Similar(5)
"If that means we have to extend term limits, then we have to extend term limits.
A more controversial proposal is to extend term limits.
Mr. Liu in turn faulted Mr. Yassky for voting to extend term limits.
Mr. Felder was a leading force in the vote to extend term limits.
Mr. Marsala, a financial planner who lives in Queens, recalled Mr. Bloomberg's effort to extend term limits with disgust.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com