Amend-and-pretend

A pejorative label for extending or modifying troubled credit while postponing confrontation with deterioration, without a credible repayment solution.

Amend-and-pretend in practice

Hypothetical: a troubled loan moves from a maturity at year two to year five, but the revised plan still provides no credible way to repay. Calling this amend-and-pretend criticizes the unresolved credit problem; it does not establish anyone’s motives in a real transaction.

Mark discretion · Financial distress · Distressed investing · Term loan · Amend-and-extend · All of the glossary