Restructuring an acquisition finance deal
Produced in partnership with Neil Caddy and Nicholas Sullivan of Fried, Frank, Harris, Shriver & Jacobson (London) LLP

The following Banking & Finance practice note produced in partnership with Neil Caddy and Nicholas Sullivan of Fried, Frank, Harris, Shriver & Jacobson (London) LLP provides comprehensive and up to date legal information covering:

  • Restructuring an acquisition finance deal
  • Consensual restructuring
  • Non-consensual restructuring
  • Relevant factors
  • Structure
  • Contractual framework
  • Parties involved
  • Isolating security
  • Asset security value
  • Location of group
  • More...

Restructuring an acquisition finance deal

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Notes: Brexit—worst case scenarios for R&I lawyers [Archived] and Brexit—impact on finance transactions [Archived].

The diagram below shows a simplified diagram of a typical acquisition finance structure.

When a leveraged credit encounters trading difficulties, depending on the severity of those difficulties, this is likely to result in one or more of the following:

  1. drawing down of any available credit facilities to ensure that the borrower/issuer has sufficient cash resources to enable a continuation of trading. If sufficient credit facilities are not available they may be required

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