This chapter explores the evolution and increasing use of liability management exercises (LME) in Europe, as well as the challenges and limitations that arise when implementing them compared to the US. It discusses the convergence between US and European documentary terms, the involvement of private credit and special sits lenders, and the tension between companies/sponsors and creditors. The chapter also delves into the differences between exit consents in the UK and US, the advantages of court-sanctioned schemes, and the collaborative culture within the European market.
In the latest installment of this Expert Views series, Reorg’s Legal Director, Shan Qureshi speaks to law firm Akin Gump’s Emma Simmonds, Sam Brodie and Clare Cottle. The lawyers took time out of their schedule to provide their expert view on liability management exercises and the considerations borrowers and lenders should take when pursuing them.
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