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Exact(4)
The report also demands a layer of debt that regulators can convert into equity if need be.
But even though no upfront cash is paid out, yet another layer of debt is incurred, adding to the cost of getting out of the deals.
In fact there is a fair chance that all large global firms will be required to augment their core capital with a layer of debt that converts into equity.
The Irish did the opposite, giving blanket bank guarantees in September 2008 which have recently been extended to the end of June at least.The alternative, which some regulators prefer, is to create a specific layer of debt that would bear losses if a bank fails, without (it is hoped) triggering a run of all creditors.
Similar(56)
Above that come various layers of debt that make up the main body of the cake.
After repeated restructurings, Eurotunnel has so many different layers of debt that it is almost impossible to keep track.
They piled layers and layers of debt — "leverage," in Wall Street parlance — onto these companies just before the economy came screeching to a halt.
Holders of the lowest layers of debt in bailed-out banks are likely to see their debt converted into equity and to take losses.
Still, for many hotel operators who financed their properties in the boom years with complex layers of debt, there was plenty to worry about.
Lawyers tend to get paid per hour, so a large restructuring of a public company, with different layers of debt, may generate legal fees "into the hundreds of thousands of pounds".
That is, the debtor is little more than a pool of other collateralized debt obligations that has issued myriad layers of debt based on the returns of that pool.
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