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.