Interest in Arrears

Interest in Arrears

Interest that is due only at the maturity date rather than periodically over the life of the loan.

Interest in Arrears

1. Interest on a loan that has not been paid, especially after payment has become late.

2. Interest on a loan that is not paid over the life of the loan, but rather in full upon maturity.
References in periodicals archive ?
Under financing agreements, Leverage Leasing paid interest in arrears that accrued in 1984 but, by the terms of the loan, was not actually due for payment until the following tax year.
The court held that advance payments of accrued interest in arrears were deductible because they represented a charge for the use or forbearance of borrowed money.
As a result of the consent solicitations, Bally will issue common stock in lieu of cash in payment of interest in arrears and certain prepaid interest to those debentureholders who have consented.
Payment of the interest in arrears to the nonconsenting holders will eliminate the defaults under the debentures and Bally's last remaining defaults on its indebtedness.
The deposit bank will be obligated to pay interest in arrears at an annual rate equal to LIBOR minus 0.
25, 1992, seek consents from holders of its 10 percent convertible subordinated debentures due 2006 and 6 percent convertible subordinated debentures due 1998 to permit Bally to issue common stock in lieu of cash in payment of interest in arrears and certain prepaid interest.
Upon successful consummation of the consent solicitations, and the payment in cash of interest in arrears to holders of the debentures who do not consent, Bally will have cured the last of its debt defaults and will be current on its interest and dividend obligations.
Bally is also soliciting consents from the holders of Bally's 10 percent convertible subordinated debentures due 2006 and 6 percent convertible subordinated debentures due 1998 to permit Bally to issue common stock in lieu of cash in payment of interest in arrears and certain prepaid interest.
27 /PRNewswire/ -- Bally Manufacturing Corporation (NYSE: BLY) announced today that it is commencing the solicitation of consents from the holders of its 10 percent convertible subordinated debentures due 2006, 6 percent convertible subordinated debentures due 1998, and Series D convertible exchangeable preferred stock to receive Bally Manufacturing common stock for interest in arrears and prepaid interest with respect to the debentures and dividends in arrears with respect to the preferred stock.
CHICAGO, June 15 /PRNewswire/ -- Bally Manufacturing Corporation (NYSE: BLY) announced today that it had filed with the Securities and Exchange Commission a registration statement relating to the offering of up to 7,534,197 shares of common stock (approximately 20 percent of the outstanding) in connection with the solicitation of consents from the holders of its 10 percent convertible subordinated debentures due 2006, six percent convertible subordinated debentures due 1998 and Series D convertible exchangeable preferred stock to receive Bally Manufacturing common stock for interest in arrears and prepaid interest with respect to the debentures and dividends in arrears with respect to the preferred stock.