English translation: loan extended after the opening of composition proceedings
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15:56 Apr 3, 2002
German to English translations [PRO] Bus/Financial / insolvency
German term or phrase:Massekredit
The context is insolvency. A group of banks is giving a company a Massekredit. Does anyone have the official term for this loan?
Found this as a translation/summary of a German article on FT: Holzmann supplied with credit (Hoozmann erhalt Massekredit von 60 Mio. Euro)
Creditor banks of Philipp Holzmann AG, the insolvent German construction group, have provided the company with the first large-scale credit.
Then, on another FT site, what I think took the place of Massekredit was translated as a "short-term" credit.
First of all, aren't these supposed to be called "loans?"
Explanation: Means: a bank (which is owed money by the insolvent co.) or just a competitor will buy them out (including the usually heavy debt). They thereby automatically move to the top of the creditor list (even ahead of secured bondholders). They can then either restructure, sell off in pieces, or swallow the company to recapture their outstanding loans. That's what American Airlines did with TWA. Even billionaire Carl Icahn had to take a backseat to AMR.
gangels Local time: 17:20 Native speaker of: English, German PRO pts in pair: 5480