Specialist restructurings

This Overview is a guide to the Banking & Finance content within the Restructuring specialist finance transactions subtopic, with links to appropriate materials.

Acquisition finance

When a business that has been the subject of a debt-funded acquisition encounters trading difficulties, depending on the severity of those difficulties, this is likely to result in one or more of the following:

•
a relaxation and/or waiver by the lenders of the financial covenant requirements in the financing documents
•
amendments to or waivers of the financing documents to permit actions that would otherwise be restricted by the general covenants
•
the equity holder injecting additional equity into the business to provide more funds for the business to operate, to de-lever and/or cure or pre-empt actual or potential financial covenant breaches, or
•
the need to significantly restructure the financing arrangements of the business (ie implement a 'restructuring')

Amendments and waivers requested in connection with any of the above are likely to require consent fees, increases in margin and/or other accommodations to be given by the company to their financiers in return for granting

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