SCG_distressed_key_restructuring

Most often, a restructuring plan must both balance the demands of competing creditor
constituencies of the company, while also preserving the company’s ability to compete
effectively and grow its value. It is most important that a restructuring plan not leave a
company hobbled where its management team and
owners are left working only for creditors for the
foreseeable future and without meaningful incentives.
Lenders’ needs in terms of receiving restructuring
securities that accommodate their preferences for
liquidity (versus holding to maturity) must also be
considered. Spectrum’s many years of experience
designing creative restructuring securities can be
key in obtaining the consents necessary to achieve
a successful restructuring.

The legal and other rights and claims of creditor constituencies, particularly guarantee
claims or claims of preference or fraudulent conveyances, can present real stumbling
blocks to a restructuring. Spectrum is accustomed to working with creditors’ rights and
insolvency attorneys to develop analyses that buttress the legal arguments that
sometimes must underlie key components of a restructuring plan.


	Distressed






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