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.