Description: Claire’s Stores Inc., the struggling tween-jewelry retail chain, is asking bondholders to exchange almost $800 million of notes for new loans that would cut the company’s debt load and buy it more time to turn around its business.

Source: Bloomberg.com

Date: Aug 13, 2016

Link: http://www.bloomberg.com/news/articles/2016-08-13/teen-jewelry-retailer-claire-s-seeks-debt-swap-to-cut-borrowings

Questions for Discussions:

• What are the risks for stakeholders in this plan?
• Do you think it should be accepted?