Crisis Management
Book Review: Distressed Investment Banking To the Abyss and Back
Faced with some combination of impending liquidity and capital-structure crises, companies and their boards of directors may consider multiple options. One option is to maintain the status quo and do nothing.
This is roughly analogous to the physician’s credo of “first, do no harm.” In effect, this strategy plays for time (liquidity permitting), in the hope that market forces or operational initiatives can adequately address the capital structure challenges that have arisen because of the mismatch between leverage and operational performance.