Open Access. Powered by Scholars. Published by Universities.®
- Discipline
Articles 1 - 3 of 3
Full-Text Articles in Law
Performance-Sensitive Debt: From Asset-Based Loans To Startup Financing, Houman B. Shadab
Performance-Sensitive Debt: From Asset-Based Loans To Startup Financing, Houman B. Shadab
Articles & Chapters
This Article develops a unique theory of performance-sensitive debt and argues that certain revenue-stage startups may be missing out on an important source of capital from asset-based loans. Debt contracts are performance sensitive to the extent any of the borrower’s obligations adjust in response to the performance of the borrower. The three main types of performance sensitivity I identify are (1) a loan’s interest rate adjusting based on the performance of the borrower; (2) the amount of available credit adjusting based on the value of collateral; and (3) renegotiation following breach of a loan covenant. Conceptualizing performance sensitivity as a …
Mezzanine Debt And Preferred Equity In Real Estate, Andrew R. Berman
Mezzanine Debt And Preferred Equity In Real Estate, Andrew R. Berman
Articles & Chapters
No abstract provided.
Will Exploding Guaranties Bomb?, Marshall E. Tracht
Will Exploding Guaranties Bomb?, Marshall E. Tracht
Articles & Chapters
Springing and exploding guaranties - insider guaranties that will become due ifand when a borrower files for bankruptcy - have become popular as "bankruptcy-proofing" devices, yet there is little case law or literature on their enforceability. This article reviews the limited existing law on these bankruptcy-contingent guaranties and examines some of the arguments against their enforceabiltiy that can be expected to be made in the future.