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adjustment bond

A type of bond issued during a company's recapitalization that exchanges outstanding bonds for a newly issued bond. Adjustment bonds are created with the permission of bondholders, who often approve of their issuance because exchanging bonds for new debt is better than the alternative: bankruptcy. An adjustment bond is similar to an income bond in that it pays out interest only when the company has earnings, with no accrued interest and no default in the case that interest is not paid in a particular period.

Related information about adjustment bond:
  1. Adjustment Bond Definition | Investopedia
    Issued by a corporation during a restructuring phase, an adjustment bond is given to the bondholders of an outstanding bond issue prior to the restructuring.
     
  2. What is adjustment bond? definition and meaning - InvestorWords.com
    Definition of adjustment bond: A type of bond issued during a company's ... An adjustment bond is similar to an income bond in that it pays out interest only when ...
     
  3. Adjustment Bond - Financial Dictionary - The Free Dictionary
    Definition of Adjustment Bond in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Adjustment Bond? Meaning of ...
     
  4. Adjustment Bonds - Financial Dictionary - The Free Dictionary
    An adjustment bond usually offers less favorable terms to bondholders, such as ... An adjustment bond can be good for the company because it can help avoid ...
     
  5. What is adjustment bond? - BusinessDictionary.com
    Definition of adjustment bond: A bond issued in exchange for outstanding bonds when recapitalizing a corporation that is facing bankruptcy.
     
  6. Adjustment Bond Law & Legal Definition
    Adjustment bond is a bond issued by a corporation during a restructuring phase. Adjustment bonds are created with the permission of the bondholders.
     
  7. Debt Adjustment Bond - State of New Jersey
    Debt Adjustment Bond. WHEREAS, application has been made to the Commissioner of Banking and Insurance of New Jersey by________________ ...
     
  8. Adjustment bond - Merriam-Webster Online
    a bond issued in settlement of a prior obligation as part of a reorganization and on which interest payments are usu. contingent upon earnings. This word doesn't ...