The owner-debtholder conflict is the divergence of the owners' and lenders' self-interest as the firm gets close to going "public."

Name: The owner-debtholder conflict is the divergence of the owners' and lenders' self-interest as the firm gets close to going "public."
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The owner-debtholder conflict refers to the divergence of interests between equity holders (owners) and debt holders (lenders) as a firm approaches financial distress or bankruptcy, not when it goes public.

The Owner-Debtholder Conflict Is the Divergence of the Owners' and Lenders