Chapter 25: Other Advanced Methodologies
Corporate Strategies
Synopsis: Describes various complex corporate strategies that may be of use in certain debtor-creditor situations.
Definition: Recapitalization Strategy -- A method of increasing the capital base of an entity under creditor attack by contributing a valuable but illiquid asset to the entity.
Definition: Dilution Strategy -- A method of decreasing a creditor's share or interest in an entity by issuing additional shares or interests to non-creditor shareholders or members.
Migration Strategies
Synopsis: Describes the basics of the Migration Strategy.
Definition: Migration Strategy -- A method of transferring assets by repeated sales of the assets to third-parties before a final sale to the target purchaser.
Redemption
Synopsis: Describes the basics of the Redemption Strategy.
Definition: Redemption Strategy -- A method of containing liabilities by an intermediate sale to a party in a debtor-haven.
Devaluation Methodology
Synopsis: Describes the basics of the Devaluation Strategy.
Definition: Devaluation Strategy -- A method of setting a low value for an asset by repeated sales to third-parties at successively lower prices, and which may include dissembling an asset with the idea of later reassembling it with the target purchaser.
Backwardization
Synopsis: Describes the basics of the Backwardization Strategy.
Definition: Backwardization Strategy -- A method for creating an apparent high sale value to defeat fraudulent transfer purposes, with a later reduction in price when the limitations period has passed.
Structured Financial Products
Synopsis: Describes potential uses of Structured Financial Products in the debtor-creditor context.
Definition: Structured Financial Product -- A financial product created to serve a transaction-specific purpose.
Definition: Replication Strategy -- A complicated strategy for transferring wealth involving mirrored option arrangements and controlled counterparties, and based on particular future assumptions of market volatility.
Definition: Zero-Coupon Bond -- Typically, a bond that has been stripped of its interest coupons so that only a single lump-sum payment is made at maturity.
Labels: asset protection, backwardization strategy, devaluation strategy, dilution strategy, migration strategy, recapitalization strategy, redemption strategy, replication strategy



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