The Credit Edge by Bloomberg Intelligence US Law Firm Gibson Dunn Is Chasing a Big Distressed Debt Opportunity in Europe
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Sep 11, 2025 
In this engaging discussion, Scott Greenberg, the Global Chair of Business Restructuring at Gibson Dunn, shares insights on the burgeoning distress debt market in Europe. He highlights how legal strategies used in the US are being adapted for European clients amidst rising financial challenges, particularly in France. Greenberg explores the complexities of navigating credit markets and the differences in restructuring practices between Europe and the US. Listeners will gain a deeper understanding of how strategic legal advice is essential in these turbulent times.
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LMEs Are A Durable Sponsor Tool
- Liability-management exercises (LMEs) remain a durable tool for sponsors to buy time even if they later file bankruptcy.
- Volume may ebb and flow, but the LME playbook will continue in stress cases with flexible documents and time to act.
Sponsors Usually Win LMEs
- Sponsors typically benefit from LMEs because they can stave off change-of-control and retain control for years.
- Larger institutional lenders usually capture better negotiated outcomes in these exercises.
Pair LMEs With A Real Turnaround
- Use LMEs alongside credible turnaround plans or strategic actions to improve their chance of long-term success.
- Avoid LMEs that are merely time buys without a plan, because lenders will be less receptive.