Optimal borrowing structure: An explanation for the multiplicity of large-share creditors and the differentiation among them

► I explore the effects and optimum features of the borrowing structure. ► The opportunity of liquidation and verification is a device to implement repayments. ► The number of creditors affects the outcome in liquidation-deterrence renegotiation. ► The share structure affects the outcome in verification-deterrence renegotiations. ► Borrowing from multiple differentiated large-share creditors can be optimal.