A small start-up companies need additional investment to maximize its company. But the owners of the company will not make this investment if it is not outstanding debts can be renegotiated. The solution to this “debt overhang” problem through negotiations is the focus of the case. In this context, students are exposed to a variety of issues: the nature of the financial claims, collective bargaining and negotiations basics and agency costs of debt.

A small start-up companies need additional investment to maximize its company. But the owners of the company will not make this investment if it is not outstanding debts can be renegotiated. The solution to this “debt overhang” problem through negotiations is the focus of the case. In this context, students are exposed to a variety of issues: the nature of the financial claims, collective bargaining and negotiations basics and agency costs of debt
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from
Marc Lipson,
Kenneth C. Dahl light,
Samuel E Bodily
Source: Darden School of Business
3 pages.
Publication Date: Jan 29, 2010. Prod #: UV4278-PDF-ENG
Kelly solar HBR case solution