what are the terms of a bailout 
the terms of a bailout will vary on a case by case basis however there will usually be set conditions or requirements for receiving a bailout such as a restructuring plan or changes to the company s management and operations bailouts may also come with certain strings attached such as limitations on executive compensation debt limits or increased oversight and accountability measures these conditions are intended to ensure that the company is able to become financially stable and avoid the need for future bailouts the bottom linea bailout occurs when a third party usually a government or government agency steps in to save a company or companies by providing them with capital credit and other forms of support a bailout is usually initiated when the consequences of allowing the company or companies to fail would lead to contagion and create even greater systemic risk in addition to the government other corporations private individuals or non profit organizations may also get involved when a company accepts a bailout it will often see its management team replaced and its debts restructured the company may also be put up for sale as a result existing shareholders may not always be saved by a bailout 