Lind equipment does not meet its loan covenants with its senior creditor bank in the summer of 2008, just six months after purchase. While the senior debt of banks amounted to only 6% of the capital used to purchase and was fully secured, he exercised his right to stop payment of the subordinated creditor Lind, who funded about 40% of the purchase, pushing the debt in default, and as well. These financial problems were the result of lower revenues and profits in the Lind, as the exchange rate and the effects of the Great Recession took their toll on the firm. No instant solutions, Lind may be in bankruptcy. "Hide
by Richard S. Ruback, Royce Yudkoff Source: Harvard Business School 8 pages. Publication Date: August 18, 2011. Prod. #: 212012-PDF-ENG
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