Practicing Success
Generally, the debentures are: |
Secured over assets of the company Not secured over assets of the company Secured over debts of the company Not secured over debts of the company |
Secured over assets of the company |
Debentures often have security or collateral attached to them, which is typically in the form of the company's assets. When debentures are secured over company assets, it means that if the company defaults on its debt obligations, debenture holders have a claim on these assets to recover their investment. This security provides a level of protection to debenture holders, making it more likely that they will receive their principal and interest payments even in cases of financial distress or bankruptcy by the company. The debentures are generally secured and carry a fixed or floating charge over the assets of the company. |