Why would you use PIK (Payment In Kind) debt rather than other types of debt, and how does it affect the debt schedules and the other statements?
a) PIK debt is advantageous for companies facing cash flow constraints and seeking to defer interest payments.
b) PIK debt offers lower interest rates compared to other types of debt, making it more attractive for borrowers.
c) PIK debt allows borrowers to pay interest with additional debt rather than cash, which can help preserve liquidity.
d) PIK debt reduces the overall debt burden on the company and improves its credit rating.