Debtwired! Scott Greenberg on the state of LMEs, group formation and cross border co-ops
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May 5, 2025 
Scott Greenberg, global chair of Gibson Dunn’s restructuring practice, shares his extensive knowledge on liability management exercises and group formation. He discusses how market dynamics are reshaping deal activity and highlights trends in multi-tier LMEs and carve-out premiums. Greenberg delves into the significance of cooperation agreements and their influence on investment outcomes, particularly in cross-border scenarios. He also reflects on the cultural disparities between European and U.S. investment practices, emphasizing the necessity of understanding these differences.
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Impact of Tariff Volatility
- Current tariff volatility has increased market uncertainty and caused pullbacks in deals.
- Fresh capital is cautious but many new distressed credits are emerging for evaluation.
Investor Capital Amid Volatility
- Investors still hold significant capital but demand higher pricing due to risk and market volatility.
- The risk of deal away transactions remains real, though these deals are now costlier.
Rising In-Court Restructuring Outlook
- Liability management exercises offer a chance to fix balance sheets but not necessarily business issues.
- In tougher capital environments, more companies may resort to traditional bankruptcy filings.