What Is Payment In Kind?

Payment in kind refers to payment in lieu of cash for goods or services. The enterprise pays employees in kind instead of cash as benefits, and debtors pay off debts by paying in kind. In-kind bonds are bonds that issue additional bonds to bondholders in lieu of paying interest in cash.

Payment in kind

Right!
Payment in kind refers to payment in lieu of cash for goods or services. The enterprise pays employees in kind instead of cash as benefits, and debtors pay off debts by paying in kind. In-kind bonds are bonds that issue additional bonds to bondholders in lieu of paying interest in cash.
Chinese name
Payment in kind
Foreign name
shiwuzhifu
Category
In kind
Features
In kind
Payment in kind refers to payment in lieu of cash for goods or services. The enterprise pays employees in kind instead of cash as benefits, and debtors pay off debts by paying in kind.
In-kind bonds are bonds that issue additional bonds to bondholders in lieu of paying interest in cash.
Bonds paid in kind are unsecured debt and are often used as a financing tool for leveraged buyout transactions. In-kind bonds generally do not pay cents before the maturity date, and are therefore very popular with transaction financing parties. Investors who hold bonds have the right to recover principal only over shareholders. Once the corporate assets are insolvent or restructured, the chances of investors receiving compensation for such bonds are very slim. Although the risks are high, investors are still attracted to physical payment bonds due to the double-digit returns.

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