easy · Investment Banking rx-dcm-ecm
What is a common consequence of an 'Acceleration' clause being triggered by lenders after a covenant violation?
- The interest rate on the debt automatically drops to zero percent.
- The company must issue additional shares of common stock to public investors.
- The lenders are contractually obligated to wait until the original maturity date arrives.
- The entire principal and interest balance becomes immediately due and payable.
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