Senior Debt Covenants (Maintenance and Financial Covenants) and Protections A covenant is a vow - positive covenants or covenants of a positive nature (do not commit fraud, file your financial statements no later than 60 days after the end of a fiscal quarter) commit an obligor to do something. Negative covenants
Restructuring
Options for Distressed Debtors: Selling the Corporate and Bankruptcy
In a previous post, we discussed refinancing and restructuring options for a corporate. Sometimes, the restructuring and refinancing options do not appease creditors and they may look for a sale. For the more senior creditors, assuming that the company is only slightly underwater, they do not care that much about the
Options for Distressed Debtors: Refinancing and Restructuring
Modeling and Analyzing a Distressed Corporate Before evaluating options, stakeholders in a distressed company must first develop a view as to how much the company is worth. As discussed in our restructuring process post, pro forma cash flows reflecting a healthy company must be analyzed in order to inform the valuation. Investment
The Restructuring Process for the Distressed Company
Stakeholders in Financial Distress and the Distressed Landscape When a company is distressed and runs into difficulties being able to meet debt service, restructuring is required with options ranging from a refinancing to liquidation of assets. Now it has been upheld in a court of law across various developed legal systems that
Restructuring Group in Investment Banking
Introduction to Restructuring Advisory Restructuring (or "RX") is the product group in the investment bank that deals with stressed, distressed and bankrupt debtors. Generally, this means corporate debt, but on occasion we have seen governments go bankrupt - from the municipal level to countries such as Greece or Argentina. Restructuring is an
Debt Refinancing Options for Issuers
The finance world is awash with debt. Corporates and governments regularly issue debt in order to fund operations and capital initiatives. However, debt can often become a problem for many reasons. Many circumstances can cause a debtor or borrower difficulties in servicing debt. We will start from the more benign to the more