The risk of prolongation is also associated with debt refinancing, in particular, the interest charged for a new loan will be higher than for the old one.
As a rule, the shorter the maturity of the debt, the higher the risk of rollover for the borrower.
This risk may also refer to the risk that a derivatives position will become worthless if and when it is rolled over to a new maturity.
Rollover risk reflects economic conditions (eg liquidity and credit markets) versus the borrower’s financial health.
Quasi-reorganization allows the company to eliminate the deficit of retained earnings by recalculating assets, liabilities and equity in the manner characteristic of bankruptcy.
Zombie debt is debt that has expired for collection.
“Despite that, the collection agencies may try to collect the debt from him, in a sense, bring him back from the dead.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital.