Fulcrum Security (Financial Restructuring & Bankruptcy Glossary)

Summary

The security or debt instrument that will be at least partially converted into the equity of the reorganized company pursuant to the terms of a lockup agreement or plan support agreement. The fulcrum security is held by fulcrum creditors. To determine which security is the fulcrum security, the company and its advisors estimate the value of the company and analyze which security or debt instrument likely will equitize.