Bill would require court nod for bond ‚haircuts‘

09.08.2011                      09.Aw-Elul, 5771                      Tischa BeAw

Wirtschaft:

Bill would require court nod for bond 'haircuts'

Knesset members Zahava Gal-On of Meretz and Yitzhak Vaknin of Shas are co-sponsoring a bill that would require court approval for any request by a company to change the terms of more than 10% of the scope of any given series of bonds.

Two Knesset members from opposing political camps are proposing a bill that would curtail companies' ability to short bondholders on debts.
Companies that can't repay their bondholders in full generally offer some sort of debt refinancing, for instance an increase in interest in exchange for more time to repay, known as a haircut in bond market jargon….