European Restructuring Insights
Stay informed about the dynamic world of financial restructuring with regular updates on recent cases, developments, trends and insights across the UK, Europe and beyond.
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European Restructuring Insights
The majority of all 2023 EMEA restructurings involving an equitisation and/or a maturity extension required the provision of new money. While equitisation can solve for an over-leveraged capital structure, and maturity extensions can provide runway for business recovery and turnaround, those steps alone are often insufficient without there also being a contemporaneous solution for liquidity. This has been the experience on many of our recent matters, and arguably is a symptom of the covenant-lite debt documents which dominate the market, and which often don't default until there is a liquidity crunch.
European Restructuring Insights
European Restructuring Insights
In this edition of the Restructuring Watch, we cover several significant developments in the world of corporate restructuring and insolvency. We examine the effective operation of the special resolution regime in relation to Silicon Valley Bank, draw out key takeaways from numerous recent restructuring plans, and discuss the most recent government report on the permanent reforms introduced by the Corporate Insolvency and Governance Act 2020. We also explore a recent judgment in the Sova Capital special administration and take a deep dive into the long-awaited Sequana judgment.
European Restructuring Insights
The UK Supreme Court has, for the first time, considered the existence, content and engagement of an obligation on directors to take into account the interests of creditors when a company becomes, or is on the cusp of becoming, insolvent (otherwise known as the “creditor duty”).