The programme will review the impact of the draft ECB guidance on leveraged transactions.
Restructuring high yield bonds pose a range of challenges not found in dealing with purely loan-driven structures; custody chains means that noteholders are more difficult (and take longer) to identify; the listed nature of notes means that all stakeholders need to be aware of market abuse aspects; the machinery for instituting action in bonds is more convoluted than loans, since notes are invariably governed by NY State law restructurings may need to take account of compliance with onerous U.S. securities’ laws and last, bond restructurings often use different tools not available in loan structures, such as Exchange offers and consent solicitations (which can be used to covenant strip notes in certain circumstances). The market has also experienced an increase in coersive exchange offers where parties have made use of innovative solutions to encourage holders to accept and discourage holdouts from remaining on the side-lines. DTEK’s triple track Exchange offer, Scheme and consent solicitation being an excellent example.
This programme summarises the methods and tools that have been used to restructure bonds and reviews some of the topical and innovative solutions that have been used to address these more complex restructurings. English schemes of arrangement have gained increasing traction in the bond markets, as they have in the loan markets, and appear to have emerged as the primary pathway of choice in a number of recent restructurings for foreign companies. Despite this Chapter 11 does offer some solutions not available in a Scheme, for example where operational restructuring is required. The programme will illustrate these methods with discussions of recent landmark restructurings including; Zlomrex (parallel Exchange offer and Scheme), Metinvest (Standstill Scheme), Privatbank, Edcon, Codere.
The course will also review the current potential cross-border restructuring options for CGG Restructuring which potentially could involve either US or French pathways or both simultaneously.
The programme will also review the key points of the Draft EU Directive harmonising restructuring and insolvency matters published on 22nd November 2016.
Case Review - The Assénagon problem re “exits’
Case Review - The Zlomrex parallel-track approach
Case Review: DTEK case tripple-track approach
Case Review - Edcon Exchange offer
Case Review – Codere, EnQuest, DTEK
Case Review: CGG Restructuring US and French options
Bonds Training Course
Training Course Details
|Floating rate note, syndicated loans, loan market association|
|Annual Debt Service Coverage ratio, Capital Adequacy Directive, Debt-Service Coverage Ratio|
|Bond restructuring, Coersive Exchange Offers, Private Exchange offers §4(a)2 Securities Act|
|The Debt Finance Training Course||Bond restructuring, Credit Default Swap, Stabilization & liquidity|
|European Term Loan "B"||High yield bonds, mergers 7 & acquisition, Revolving Credit Facility|