Orateur
M.
Teruyoshi Suzuki
(Hokkaido University)
Description
We analyze the interaction of the debt renegotiation between two firms that cross-hold their issuing debts and equities. When the firms are reciprocally the major shareholder and/or debt holder of the other firms, the possibility of debt renegotiation will affect each other. We first develop models of debt renegotiation scheme: debt equity swap and strategic debt service with game-theoretic setting under continuous time models. We then derive the optimal boundaries in each model to offer debt renegotiation by equity holders of the one firm to those of the other firm. We show that the simultaneous debt renegotiation can happen when firms cross-hold their debts and we present the comparative statics of the renegotiation boundaries.
Auteur principal
M.
Teruyoshi Suzuki
(Hokkaido University)
Co-auteur
Dr
Kyoko Yagi
(Faculty of Systems Science and Technology, Akita Prefectural University)
