PT  - JOURNAL ARTICLE
AU  - Nicholas Theys
AU  - Stéphanie Paget
TI  - New Money Priority Ranking: <em>A New Tool to Invest and Restructure Underperforming Companies</em>
AID  - 10.3905/JPE.2009.12.3.108
DP  - 2009 May 31
TA  - The Journal of Private Equity
PG  - 108--111
VI  - 12
IP  - 3
4099  - https://pm-research.com/content/12/3/108.short
4100  - https://pm-research.com/content/12/3/108.full
AB  - New money priority ranking enables creditors to obtain priority ranking if they invest in an underperforming company which is undergoing a conciliation procedure. The creditor must contribute new cash, goods, or services with a view to insuring the continuation of the company’s business activity, and these contributions must be agreed to in a ratified agreement. The ranking grants priority before all debts arising before the commencement of the conciliation procedure, just after wages and salaries and legal costs. Thus, new money appears to be a valuable tool for the refinancing of companies facing difficulties.TOPICS: Private equity, financial crises and financial market history, developed, manager selection