Early Extinguishment of Debt

Early Extinguishment of Debt

The payment of a debt in full before it is due. Early extinguishment of debt is good for the borrower because it relieves him/her of the debt, but it deprives the lender of interest he/she would have received otherwise. As a result, some lenders attach prepayment penalties to loans to disincentivize early extinguishment. Early extinguishment of debt is also called prepayment, which has other meanings as well. See also: Prepayment risk.
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These items may include, for example, loss on early extinguishment of debt, restructuring charges, gain on Anheuser-Busch InBev /SABMiller, AB InBev special items, certain tax items, charges associated with tobacco and health litigation items, and resolutions of certain non-participating manufacturer adjustment disputes under the Master Settlement Agreement.
2 million loss on early extinguishment of debt, as well as a USD 47.
Intelsat reported EBITDA1, or earnings before net interest, loss/(gain) on early extinguishment of debt, taxes and depreciation and amortization, of USD 414.
The GAAP results for the fourth quarter 2015 include two special items totaling USD25 million in pre-tax income: a net gain of USD33 million from the early extinguishment of debt and USD8 million revenue reduction from the resolution of a flying contract matter.
The debate usually surrounds the classification of this item on the income statement--specifically, whether gains or losses from early extinguishment of debt should be reported as an extraordinary item or as a part of continuing operations.
The results for the second quarter and the first six months of 2012 included a charge for the loss on the early extinguishment of debt of $19.
That compares to a profit of $178 million, or 37 cents per share, in the first quarter of 2009, when Tenet recorded a $134 million gain from the early extinguishment of debt.
145 significantly shortened the list of extraordinary items by repealing the requirement that all early extinguishment of debt be treated as extraordinary.
3 million after tax charge in early extinguishment of debt costs and restructuring expenses associated with the closure of its Glueckstadt, Germany cotton linter pulp plant.
8 million for fiscal 2001, before an extraordinary item relating to the early extinguishment of debt in 2001.
4 million extraordinary loss on early extinguishment of debt.
0 million after-tax loss related to the early extinguishment of debt in connection with the previously-announced redemption of the MCF bonds.
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