RT Journal Article
SR Electronic
T1 New Money Priority Ranking: <em>A New Tool to Invest and Restructure Underperforming Companies</em>
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 108
OP 111
DO 10.3905/JPE.2009.12.3.108
VO 12
IS 3
A1 Nicholas Theys
A1 Stéphanie Paget
YR 2009
UL https://pm-research.com/content/12/3/108.abstract
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