Comments on: Asset Based Lending: the Charging Bull in the Distressed Debt Market

By: HAHA

HAHA — Mon, 01 Mar 2010 16:15:03 +0000

I'll assume you're talking about a small closely held corporation. If possible, keep the amount of debt less than twice the amount of equity (i.e a 2 to 1 leverage ratio). If it gets much higher than than, the owners may end up with some very high rates of return when the company is profitable due to the leveraging. But the leverage ratio is an indicator of a company's ability to withstand adversity. So if you're highly leveraged and the economy goes into recession, you won't be able to ride it out for very long.

If you're raising additional equity from the current group of owners, that's fine. If you're bringing in new additional owners as a source of equity, then you have to be concerned with how they will interact with the present owners. Also, the original owners' ownership percentates will be diminished with possible loss of control and/or board of directors seats.

By: orion

orion — Mon, 01 Mar 2010 15:32:43 +0000

am not sure in India, but in majority of the market there are mutual funds that invested in bond. the fund managers will switch from one bond to another for the most profitable return.

By: HAHA

HAHA — Mon, 01 Mar 2010 15:15:20 +0000

My suggestion is trying to obsord as much information as you can before making up your mind,here http://www.DebtFreetips.info/debt-free.htm is a good one.

By: ac26xp

ac26xp — Sun, 28 Feb 2010 16:05:38 +0000

Sort of but not exactly. It is a collection of preferred stock, which are sort of a debt and in fact many times classified as debt but are further down on the food chain when it comes to bankruptcy proceedings than corporate bonds. Generally, preferred stock holder get nothing whereas corporate bond holders might bet a pertinence. Another difference is the tax consequences. A portion of the income from this fund will be taxed at the current preferred rate whereas bond interest is not.

By: shewolf54935

shewolf54935 — Sat, 27 Feb 2010 08:43:50 +0000

Your question is unclear. Click on "Additional details" on the top right of ur screen and make the question clear and then i might be able to answer it

By: oMg!

oMg! — Sat, 27 Feb 2010 06:42:09 +0000

Send the collection agency a certified, return receipt letter requesting validation of the debt to include copies of contracts and other documentation that proves the debt is yours. Give them 30 days.

By: Wild C

Wild C — Fri, 26 Feb 2010 19:46:55 +0000

If I got all of the information correct, it looks like they will be issuing $300 million in debt.

500 million shares x$3/shr = 1.5 Billion
500 million shares x $2/shr = $1 Billion

leaving $500 million for the capital budget.

Of course, this is overly simplfied, because there would be taxes already taken out of the dividend payment.

By: Raquel

Raquel — Fri, 26 Feb 2010 06:49:23 +0000

Hamilton's idea was for rich people to loan the government money through bonds. In order for those bonds to retain any value (and the people holding them to be able to cash them in later), the government would have to survive. Therefore, those rich people would use their influence to make sure the government succeeded. Common people living hand-to-mouth didn't have extra money to loan out, or influence that would affect the fate of the new government, so they were pretty much left out of this process.

By: BekindtoAnimals22

BekindtoAnimals22 — Fri, 26 Feb 2010 06:15:48 +0000

the Dems are trying to back the Republicans into a corner- if the Republicans oppose the new debt ceiling and vote against the bill, the Dems can claim that the Repubs don't support the troops