Client Alert October 12, 2023
- Korean banks are holding an increasing amount of non-performing loans, putting their financial health at risk.
- For many with large portfolios exposed to cross-border unsecured debt and loans to high-yield borrowers, sale and write downs may not be optimal.
- A cross-border strategy to monetize their claims could offer a superior alternative.
Client Alert August 3, 2023
- Distressed debt investors who are beneficial owners or contingent creditors of bonds face uncertainty when bond issuers stop paying.
- Courts in key jurisdictions are beginning to answer the question of whether creditors can wind-up issuers but are offering diverging decisions.
- We explain how a recent ruling in the BVI opens the offshore jurisdiction to creditors considering a cross-border enforcement campaign.
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 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 March 28, 2022
- Prices of Russian and other sovereign debt are falling as their economies buckle, presenting both opportunities and challenges for investors.
- Enforcing the debt against sovereign entities is already difficult, more so when sanctions are involved.
- As our Claim Monetization & Dilution team explains, non-traditional strategies may go further in putting maximum pressure on sovereigns and maximizing returns.
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.
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