France’s trust structure has proved its potential for risk mitigation in the higher risk-return part of the credit spectrum, and its potential for more vanilla or investment-grade financing is becoming clear. Benjamin Raillard of Solutions Fiducie explains
Private equity firms and their lawyers argue that loosening the restricted payments covenant is necessary to ensure their interests match those of the borrower by keeping the sponsored company in financial good health. But it’s a controversial development, finds David Turner
Lawyers from Paul Weiss pinpoint the areas of a private equity firm operations that may need to be adjusted to account for the coronavirus outbreak, including fund documentation, valuation and banking relationships.
Faster chapter 11 cases have now become possible and private debt firms are expected to be in the vanguard of this development. David Hillman, Elisabeth Baltay and Chris Theodoridis of Proskauer explain why.
Fewer covenants can provide greater flexibility in dealing with portfolio company difficulties, but they may also prevent lenders from negotiating rescue plans with borrowers and sponsors. Andy Thomson and Andrew Hedlund investigate