Debt can be more dangerous to financially stressed colleges than unpaid vendors and taxes. The impact of many financial problems can often be postponed through negotiations. However, violation of debt covenants and unpaid debt service cannot be postponed. Debt holders will not accept delays or excuses, Instead, when a college violates its covenants or fails to keep current with debt service payments, debt holders often have the right to immediately call for full-payment on the balance of the principal. Lenders can protect their financial position by forcing a college into bankruptcy.<\/p>\n
Negotiating with debt holders is difficult because they want to keep their default rates low to satisfy government regulators and investors. A lender will only delay the draconian step of forcing a college into bankruptcy under this condition.<\/p>\n
A credible plan to quickly pay outstanding debt payments and end violations of debt covenants. The tough part of this condition is that the debt holder determines if the plan is credible, and they are not easily satisfied.<\/p>\n
If a college is looking for sympathy from debt holders, they will quickly find that there is little or no mercy to be had!<\/p>","protected":false},"excerpt":{"rendered":"
Debt can be more dangerous to financially stressed colleges than unpaid vendors and taxes. The impact of many financial problems can often be postponed through negotiations. However, violation of debt covenants and unpaid debt service cannot be postponed. Debt holders will not accept delays or excuses, Instead, when a college violates its covenants or fails […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[6],"tags":[],"coauthors":[24],"_links":{"self":[{"href":"https:\/\/knowacademia.com\/index.php?rest_route=\/wp\/v2\/posts\/2458"}],"collection":[{"href":"https:\/\/knowacademia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/knowacademia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/knowacademia.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/knowacademia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2458"}],"version-history":[{"count":3,"href":"https:\/\/knowacademia.com\/index.php?rest_route=\/wp\/v2\/posts\/2458\/revisions"}],"predecessor-version":[{"id":2461,"href":"https:\/\/knowacademia.com\/index.php?rest_route=\/wp\/v2\/posts\/2458\/revisions\/2461"}],"wp:attachment":[{"href":"https:\/\/knowacademia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/knowacademia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/knowacademia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2458"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/knowacademia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcoauthors&post=2458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}