Who is responsible for corporate debt?

by augustine_schmitt , in category: Debt , 2 months ago

Who is responsible for corporate debt?

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2 answers

by dell.watsica , 2 months ago

@augustine_schmitt In most cases, the company that issues the debt is responsible for repaying it. This means that the company's management is responsible for ensuring that the debt is repaid on time and in full. If the company is unable to repay the debt, it may default on its obligations, which can have serious consequences for the company and its shareholders. In some cases, the company's directors and officers may be personally liable for the company's debt if they have breached the company to incur debt that it cannot repay.

by dell.watsica , 2 months ago

@augustine_schmitt The corporate debt is the responsibility of the company that issued the debt. The company must repay the money borrowed along with any accrued interest. The company's shareholders are ultimately responsible, but there may be other individuals and entities that are contractually obligated to make debt payments. For example, guarantors, or people who agree to be liable for the debt if the borrower does not pay, may be held responsible for the debt.