Snow and Leverage

  title={Snow and Leverage},
  author={Xavier Giroud and H. Mueller and Alex Stomper and Arne Westerkamp},
  journal={NBER Working Paper Series},
  • Xavier Giroud, H. Mueller, +1 author Arne Westerkamp
  • Published 2010
  • Business, Economics
  • NBER Working Paper Series
  • This paper examines whether reducing a debt overhang improves borrowers' operating performance using a sample of distressed and highly overleveraged Austrian ski hotels undergoing debt restructurings. The vast majority of the ski hotels experience substantial debt forgiveness, resulting in reductions in leverage of about 23% on average. These reductions in leverage, in turn, bring about statistically and economically significant improvements in operating performance of about 28% on average… CONTINUE READING
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