Abstract
This article builds a new structural default model under the assumption that assets returns follow dynamics displaying jumps of both signs. In essence, we expand the work of Hilberink and Rogers which is itself an extension of the Leland and Toft framework, but that deals only with negative jumps. We make use here of stable Lévy processes, and this enables us to compute the values of the firm, debt and equity. Theoretical credit spreads can also be obtained in our framework and prove to be consistent with the empirical credit spreads observed on the markets.