---
title: Sell, Hold Out, or Accept: The Creditor's Trilemma in Distressed Debt Exchanges
url: https://www.ml-quant.com/papers/ssrn/7502204/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7502204
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7502204
featured: 2026-09-25
citations: unknown
topic: Risk, Credit & Banking
---


# Sell, Hold Out, or Accept: The Creditor's Trilemma in Distressed Debt Exchanges

Analysis of 284 distressed exchanges from 2009-2022 reveals over 50% of firms face subsequent default, with large illiquid creditors trapped in a prisoner's dilemma explaining high acceptance rates.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7502204
- Identifier: SSRN 7502204
- Released: 2026-09-22
- First featured: Quant Letter No. 132 (2026-09-25): https://www.ml-quant.com/issues/2026-09-25/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking
- Authors: Rafal Sieradzki, Edward I. Altman

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