In this bulletin, we evaluate the use of schemes of arrangement and consent solicitations / exchange offers as alternative mechanisms of delivering a bond restructuring. We outline the nature of distressed exchange offers before taking a closer look at:
- the Edcon and Ukraine restructurings;
- the pros and cons of schemes vs. exchange offers;
- setting consent thresholds for exchange offers; and
- the possibility of twin-tracking a scheme with an exchange offer.
This bulletin builds on our series of scheme hot topics bulletins earlier this year, available here.
On 29 October 2015, Ukraine announced that, with the exception of the Russian series of bonds, the exchange offers were successful. Settlement of the new bonds and the GDP-linked securities for which the old debt is being exchanged is expected today. Weil played a central role advising the ad hocRead the full article →
Yesterday, 22 September, Ukraine successfully launched exchange offers in relation to 14 sovereign and sovereign-guaranteed Eurobonds with outstanding principal amounts of c.US$18 billion. This follows less than a month after Ukraine and its ad hoc creditors’ committee (“AHC”) agreed Indicative Heads of Terms, following months of intense negotiations.
Following five months of intense and complex negotiations, Ukraine and the Ad Hoc Creditors’ Committee (“AHC”), which comprises Franklin Advisers, Inc., BTG Pactual Europe LLP, TCW Investment Management Company and T. Rowe Price Associates, Inc., have agreed Indicative Heads of Terms (“IHT”) for the restructuring of 14 sovereign and sovereign-guaranteedRead the full article →
Greek bank bonds suffered heavy losses this week after Eurozone finance ministers agreed that senior bondholders would be bailed-in when Greece’s banks are restructured later this year. In our latest post from Kate Stephenson, Alex Wood and Andrew Wilkinson, we cover: moves to restore the financial stability of Greek banksRead the full article →