About a quarter of companies that go through a distressed exchange event end up in so-called “hard defaults” such as bankruptcy or a missed payment, according to a
While struggling borrowers turn to strategies like distressed debt exchanges, modifications of debt documents or impairments to win time to turn around their fortunes, often those measures fail to land the company on a stable footing.
More than a third of companies that go through such events ultimately end in a hard default or implement another restructuring, according to the Moody’s report. The study examined roughly 1,200 borrowers ...