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Debt Assignment

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Debt Assignment
The transfer of debt, and the right of receiving repayment, from a creditor to a third party, usually, but not always, a subsidiary of the original creditor. A company may assign debt to a subsidiary to protect investors who do not wish to invest in a new, risky deal, or it may simply wish to hide losses from shareholders. The debtor is unaffected unless the third party draws up new terms. See also: Enron scandal, Aggressive accounting.


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Additionally, given its intimate knowledge of the properties and its leases, CSFB was able to provide the most attractive and flexible financing in what was a highly sought after debt assignment.
The outlook for all Conseco's ratings, including this debt assignment, is positive.
Aviation Group received $800,000 in cash and debt assignment for its Casper operations, while retaining working capital and other assets not sold with a net liquidation value of approximately $400,000.
 
 
 
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