Articles by author
Splitting the difference: transfer of assets and liabilities in restructurings to reset business profile
A business may need to restructure for a variety of reasons; these may be wider industry issues or issues specific to the business, certain assets or segments therein. Issue may arise, among other reasons, due to underperformance, rising costs or a diversion of management time. Management may look at a business in a way that differs from creditors, with the former particularly interested in future growth and the latter likely looking at shorter term cashflows. In a restructuring context, creditors may make the transaction conditional on a refocus of the business as a part of a wider deal to support the business (or a part thereof) in its future operations. Alternatively, there may be alignment on the non-core nature of certain assets and, as part of a restructuring, an agreement to isolate the value of those assets to repay creditors. This article explores general themes that may be relevant when splitting certain assets and liabilities as part of a restructuring. Crucially, transactions of this nature are bespoke and, whilst they are unlikely to be the prevailing method of restructurings, they may provide optionality or tailored solutions which may benefit all parties.
9 JUN 2025Issues between creditors and debtors when restructuring listed debt
In this article, the authors explore certain key issues creditors and debtors face when restructuring listed debt (referred herein as “bonds”). There are administrative problems that can arise when dealing with a large number of disparate bondholders and the complexities of dealing with material non-public information (MNPI) during restructuring negotiations. The authors consider the different parties involved in these restructurings and how advisors can assist these parties in navigating these hurdles.
1 JAN 2021The art of the intercreditor
Over the last decade, financing transactions have moved away from typical senior/mezzanine loan structures to a wider variety of products including syndicated loans, first lien/second lien loans, direct lending and high yield bonds (and in some cases, a hybrid of them). This has increased lenders’ attention on the intercreditor terms, which establish the relationship and priority between the different types of creditors in the financing structure, particularly in the circumstances when things go wrong. In this In Practice article, the authors consider the key terms of intercreditor agreements that creditors should be focused on during negotiations and, how these and other provisions differ between a structure comprised of senior and junior loans (Senior/Junior Structure) and a structure comprised of notes, each accompanied with a super senior revolving facility (Notes/SSRCF Structure). 11 1
1 JAN 2024
