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