Business Case Studies & Business Publications

Kelly Solar

Bodily, Samuel E.,...

Case

Kelly Solar

Bodily, Samuel E.; Lipson, Marc L.; Lichtendahl, Kenneth C. Jr.

F-1614 | Published January 29, 2010 | 3 pages Case

Collection: Darden School of Business

Product Details

A small start-up company must make additional investments to maximize its firm value. But the company owner will not make this investment unless she can renegotiate outstanding debt claims. Solving this "debt overhang" problem through negotiation is the focus of the case. In this context, students are exposed to a variety of issues: the nature of financial claims, bargaining and negotiation fundamentals, and agency costs of debt.