Restructuring Debt Securities: Options and Legal Considerations
Client Memorandum

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While the current economic slowdown and credit crunch have limited refinancing options for companies that 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.

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