impaired debt

impaired debt
Also known as "distressed debt".
Debt which the borrower is unlikely to be able to repay in full to the lender on its maturity date as the borrower is in financial trouble or in a form of insolvency. Debt may also be distressed if it is "value impaired" (for example, the borrower may have breached key covenants in the facility agreement). Distressed debt is traded on the secondary market below its face value and is generally traded using LMA standard documents.
It can be contrasted with par debt.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Impaired Credit — A deterioration in the creditworthiness of an individual or entity. This is usually reflected through a lower credit score, in the case of an individual, or a reduction in the credit rating assigned to an entity by a rating agency or lender. The… …   Investment dictionary

  • distressed debt — England, Wales Also known as impaired debt . Debt which the borrower is unlikely to be able to repay in full to the lender on its maturity date as the borrower is in financial trouble or in a form of insolvency. Debt may also be distressed if it… …   Law dictionary

  • par debt — England, Wales par debt Also known as par loans . Debt which is performing in full as the borrower is not in financial trouble or in a form of insolvency. Par debt is traded on the secondary market at its face value because the market considers… …   Law dictionary

  • Collateralized debt obligation — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • par loans — England, Wales par debt Also known as par loans . Debt which is performing in full as the borrower is not in financial trouble or in a form of insolvency. Par debt is traded on the secondary market at its face value because the market considers… …   Law dictionary

  • National Asset Management Agency — Agency overview Formed Late 2009 Jurisdiction Ireland …   Wikipedia

  • Subprime mortgage crisis — Part of a series on: Late 2000s financial crisis Major dimensions …   Wikipedia

  • Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk …   Wikipedia

  • Emergency Economic Stabilization Act of 2008 — This article is about one division of an enacted statute. For the entire statute, see Public Law 110 343. For the enacted rescue program, see Troubled Asset Relief Program. The Emergency Economic Stabilization Act of 2008 (Division A of Pub.L.… …   Wikipedia

  • Sleep deprivation — Classification and external resources eMedicine topic list …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”