Cloud 9fin
The ABCs of private credit LMEs, with Freshfields
Jun 7, 2024
The podcast delves into 'lender-on-lender violence' in private credit, discussing how companies, sponsors, and lenders navigate liability management. Legal experts explore the evolving market dynamics, the impact of debt restructurings, and the importance of aligning incentives in private credit transactions. The episode highlights the complexity of the private credit market, including the influence of opportunistic funds, evolving lender protections, and the emergence of bespoke solutions tailored to companies' unique challenges.
36:40
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Liability management in private credit helps companies address financial challenges to avoid bankruptcies.
- The evolving market dynamics have led to an arms race in credit documentation for lender protections.
Deep dives
Understanding Liability Management in Private Credit
Liability management in private credit refers to solutions companies seek when facing issues like over-leverage, upcoming debt maturities, or liquidity problems. Companies prefer addressing these issues out of court through liability management to avoid costly Chapter 11 bankruptcies. With evolving market dynamics, lender protections like equal treatment are crucial to prevent major lenders from unfairly benefiting at the expense of minority lenders.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
