holdout creditors

Holdout creditors are lenders or bondholders who refuse to accept a debt restructuring proposal, often because they believe they can get better terms. In situations like national or corporate defaults, when a borrower wants to change repayment terms or settle for less than owed, some creditors may choose not to participate in the new agreement. This creates challenges, as the holdouts can complicate negotiations and prolong the borrowing entity's financial troubles. Holdout creditors may hold out for full repayment or more favorable conditions, impacting the overall resolution of the debt situation.