This chapter explores Carnival's recent 2L note issuance and the intricate mechanisms that could allow for re-securing a portion of the debt. It analyzes potential scenarios post-bankruptcy where asset values rise and the strategic moves by debtors that may impact the classification of 1L and 2L notes.
The Covenants and Americas Core Credit teams discuss Carnival’s new second lien notes, focusing on a mechanism that could cause a portion of the new notes to become unsecured.
If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial.