Debt Overhang

Debt Overhang,

How Do You Define Debt Overhang?

  • You can define Debt Overhang as, Excessive debt means so much debt that the company cannot borrow extra to finance future plans. This includes companies that are significantly more profitable over time. Excessive indebtedness is a constant barrier to investment as all resources in the new project will go to existing lenders only, which will give the company a lot of incentive and the ability to try to get out of the hole.

    • Excessive debt means so much debt that the company cannot borrow extra to finance future plans.
    • Expenses are so high that instead of financing new investment projects, all revenues are paid for existing loans, which increases the fixed capacity.
    • Excessive debt can lead to low investment, slow growth and impede recovery.

Literal Meanings of Debt Overhang

Debt:

Meanings of Debt:
  1. Some, usually money, loans or debts.

Sentences of Debt
  1. I paid my debt

Synonyms of Debt

financial obligation, money owing, account, bill, outstanding payment, tally, amount due

Overhang:

Meanings of Overhang:
  1. Hang or lie down

  2. The part of something that stands or stands above something else.

Sentences of Overhang
  1. Solid road covered with trees

  2. Buried under a bush

Synonyms of Overhang

project, extend over, poke out, stick out, poke out over, jut out, stand out over, jut, bulge out over, beetle over, jut over, protrude, loom, extend, loom over, stick out over, protrude over, project over, beetle, cantilever out, bulge out, jut out over, stand out, cantilever out over, hang over