The Thinking Outside the Box report from the European Leveraged Finance Association and law firm Akin Gump finds that borrowers are not always obliged to share key information, creating so-called “blind spots” with potentially serious consequences.
The report highlights several examples including excessive debt at Rallye, the parent company of French retailer Casino, which led to “years of large dividend pay-outs and underinvestment in the restricted group”; and a cash requirement at UK retailer Very Group that arose from the collapse of Greensill, lender to its parent company Shop Direct, which did not have to be disclosed to lenders...
