Challenges, Liquidity Needs, and Loopholes in Corporate Bond Documents

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This chapter explores the challenges faced by a company due to declining car prices and the need for liquidity to sustain operations and provide credit enhancement. It also discusses the loopholes in the company's corporate bond documents and the off-market flexibility in their structure.

The Covenants by Reorg team discusses Hertz’s and Avis’ corporate capital structures and securitization structures, the impact coronavirus has had on their business and the companies’ ability to raise liquidity under loosely drafted debt and lien covenants. If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial