Client Alert July 20, 2023
- Many Chinese debt issuers are still undergoing a wave of defaults, putting offshore general unsecured creditors at risk.
- One way to secure substantial recovery is to enforce keepwell agreements, promises by a PRC onshore parent company to maintain a debt issuer’s liquidity and solvency.
- This can expand the range of enforcement targets, increasing creditors’ options and chances of success.
Client Alert May 25, 2023
Asia-Based Investors in U.S. Commercial Real Estate Can Mitigate Losses by Defending their Legal Rights
- Chinese and other Asia-based investors have targeted the U.S. commercial real estate market recently, whether by direct investment or through CMBS or REITs.
- However, the pandemic, credit tightening and regional bank failures have accelerated a market downturn, and many investors are vulnerable to losses.
- Investors should consider proactive or counteroffensive strategies to enforce their legal rights, even against big industry players, to mitigate their losses and protect their bottom lines.
Client Alert December 22, 2022
- Tightening global credit conditions will put more corporate high-yield debt issuers and private borrowers from emerging markets at risk of default.
- This can spiral into complex cross-border disputes with creditors, threatening the company’s survival.
- Fortunately, there are creative and aggressive strategies available for debtors to limit their exposure and protect their bottom lines.
Client Alert January 26, 2022
- Mainland China is undergoing a wave of credit defaults, and creditors should use every tool available to maximize recovery.
- Keepwell agreements, a promise by a PRC onshore parent company to maintain an offshore debt issuer’s solvency, is one option for overseas enforcement.
- Creditors can use them to launch a multijurisdictional recovery campaign to drive up pressure on the debtor and reach a near-term settlement.
Client Alert September 8, 2021
- Offshore bondholders of distressed Chinese real estate companies often lack leverage in restructuring negotiations, with those companies’ assets located mostly in China.
- China Evergrande Group is just one of the many Chinese real estate companies teetering on default, with wide-ranging consequences.
- However, by taking deploying creative strategies and taking positions against competing stakeholders, activist bondholders can carve out a direct path to monetization.
Client Alert December 8, 2020
- When a debt comes due, standing up to a global institutional lender can seem daunting for Indian debtors, especially if disputes scatter overseas.
- Regardless of whether a lender feels generous or not, however, there are steps debtors can take to increase their leverage and fortify their defenses.
- These include fighting for better terms, buying more time and holding lenders accountable.
For media inquiries, please contact:
email | +1 646 448 6283