Debt overhang
A debt overhang problem emerges if a company has a new investment project with positive net present value (NPV), but cannot capture the investment opportunity due to an existing debt position, i.e., the face value of the existing debt is bigger than the expected payoff to debt holders.
Debt overhangOverhangHeavily Indebted Poor CountriesStewart MyersSouth American economic crisis of 2002High-yield debtToxic assetCapital structureEmergency Economic Stabilization Act of 2008David Woodward (economist)Luis FierroMoral hazardCapital Purchase ProgramMining industry of the Democratic Republic of the CongoTroubled Asset Relief ProgramSergei GurievCapital Assistance ProgramSaidu Samaila SambawaEconomic history of the Netherlands (1500–1815)South Carolina Canal and Railroad Company
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