If a company is in financial distress,the existence of debentures and the associated trust deed can compound difficulties.Which of the following statements is unlikely to be a difficulty for a company in financial distress?
A)Publicity resulting from any actions taken by the trustee.
B)Borrowing restrictions.
C)Interest payments on the debentures.
D)None of the given options.

Question

Quizplus · Accepted Answer

The existence of debentures and the associated trust deed primarily introduces challenges such as potential borrowing restrictions and obligations for interest payments, but none of the options listed inherently eases difficulties for a financially distressed company.

If a Company Is in Financial Distress,the Existence of Debentures