In the Know: Current Considerations When Restructuring European Private Credit Investments

Welcome to the March edition of In the Know, Baker McKenzie's Leveraged Finance newsletter that takes a look at global market trends in various jurisdictions and areas of law relating to leveraged finance and high yield.

This article discusses considerations for credit funds that face a restructuring situation in the post-COVID-19 world - whether one largely caused by the challenges posed by the pandemic or one simply accelerated by such challenges - and how workouts of these investments present their own challenges.

Key highlights include:

• Understanding cash flows
• Confidentiality in private markets
• Evaluating the problem
• Planning ahead
• Local knowledge
• Identifying plan B and any structural or documentary issues
• Intercreditor dynamics
• Plan A vs. plan B