Restructuring Debt Securities: Options and Legal Considerations - October 2008
While the current worldwide economic slowdown and credit crunch have limited refinancing options for companies which have previously issued debt securities, the recent decline in secondary market prices for debt securities has presented an opportunity for companies to restructure their debt on more favorable terms. By repurchasing their debt securities for cash or exchanging them for new securities, companies may be able to retire their existing indebtedness at less than the original face value and reduce the related interest costs. This memo outlines some basic legal considerations for companies considering such a debt restructuring.
This communication, which we believe may be of interest to our clients and friends of the firm, is for general information only. It is not a full analysis of the matters presented and should not be relied upon as legal advice. This may be considered attorney advertising in some jurisdictions. Please refer to the firm's privacy notice for further details.
Copy link to share post