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Coordination Problems Due to Creditor Coalitions Generally Arise Because

Question 4

Multiple Choice

Coordination problems due to creditor coalitions generally arise because


A) different creditors have different interest in the borrowing firm.
B) it is hard to ensure that a certain restructuring plan would be accepted by all creditors.
C) the borrowing firm's shareholders can block a restructuring plan which causes the creditors to renegotiate the terms of lending,
D) a and b only.
E) all of the above.

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