The Law Dictionary

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DEADWEIGHT DEBT Definition & Legal Meaning

Definition & Citations:

DEBT of a company that is used to fund operat- ing losses or service other debt rather than support productive invest- ment or ACQUISITIONS, or create incremental ENTERPRISE VALUE. Although the debt is necessary to ensure survival, it can become burdensome unless the underlying ASSETS or operations being financed can be made productive or other borrowings can be reduced.


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