Overview of Liability Management Transactions

Liability management transactions involve out-of-court balance sheet restructuring strategies outside of a typical chapter 11 process. These transactions often focus on pitting different lender groups against each other to achieve specific goals such as debt reduction, maturity date extensions, or increasing liquidity. Various categories of transactions like drop downs, up tier transactions, double dips, and guarantee or release transactions are common, each serving different restructuring purposes like asset transfers, debt amendments, or new debt issues.