Restructuring High Yield Bonds: Navigating the Downturn and Staying Nimble in Response to Market Changes

Issuers face numerous restructuring alternatives, both within and outside the bankruptcy process.

The Big Picture -

Issuers of high yield bonds trading at distressed levels can use exchange offers to restructure or modify their outstanding bonds in order to preserve the going concern value of their businesses and potentially avoid bankruptcy. These transactions can reduce cash interest expense, defer near-term maturities, provide security for bondholders, or eliminate or modify existing covenants. Additionally, “prepackaged” plans of reorganization (including those used as a “stick” in connection with an exchange offer) and “pre-negotiated” plans of reorganization can be of value.

Please see full Alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Latham & Watkins LLP | Attorney Advertising

Written by:

Latham & Watkins LLP

Latham & Watkins LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.