easy · Private Credit & Debt loan-structures-instruments
What is 'Pari Passu' status in the context of corporate debt?
- The debt is automatically cancelled if the company reaches its profit targets.
- The debt is only repayable in small installments over twenty years.
- Two or more tranches of debt have equal priority and will be repaid proportionally in a liquidation.
- The lender has the right to travel with the borrower's management on business trips.
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