Legal Issues in Restructuring

Review of main differences in insolvency rules
Documentation requirements
Gaps in documentation
Legal options
- Differences across different regimes
Creditor-friendly regimes versus debtor-friendly ones
- Legal reorganisation
- Stakeholders with special interests – suppliers, leaseholders, etc
- Liquidation, sale, or debt restructure
- Role of vulture funds
Priority of payments in a debt restructuring
- Senior lenders
- Junior debt
- Contractual subordination versus structural subordination
- Trade finance
- Asset-based lenders
- Invoice discounting
- Preference capital

Moratorium or Standstill Agreements

Role and Purpose of the Creditors’ (Ad-hoc/Steering) Committee

Different types of creditor committees
- Senior Junior
- Bondholders Unsecured creditors
- Formal vs Informal committees
When to form a Committee
Who initiates the formation
The Debtors' perspective (why they may want to delay the formation of the Committee)
Dealing with uncooperative Debtors
Size of Committee (trade-off between size and manageability)
Who should be on the Committee (primary, secondary, distressed)
Obstacles to specific parties being on the /committee
- Reconciling conflicts and tensions in the Committee
- public vs private (confidentiality)
- Sub-participations
Documenting the Committee - what's best; letter, agreement, deed of adherence
Creditors’ committee agreement (Key clauses/headings)

Shareholders’ Commitment Lock-in

Corporate Debt Restructuring and Turnaround Agenda

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