The current market environment, created by the global COVID-19 pandemic, has few parallels. During periods of economic uncertainty, many issuers and borrowers face significant and difficult issues in managing their capital structure. The purpose of this guide is to provide issuers and borrowers with practical guidance to proactively manage these issues and control their capital structure. In particular, this guide:

  • Considers key bond covenants to focus on when making crucial decisions to achieve certain financing objectives and, most importantly, avoid covenant breaches or worse.
  • Outlines liability management options for issuers to manage outstanding bond obligations.
  • Maps a course for a review of loan documentation.
  • Offers strategic insights and positioning in restructuring and work-out scenarios.

The considerations set out in this guide are not intended to be exhaustive or constitute advice relating to particular situations. Issuers and borrowers should take appropriate legal and commercial advice before taking any action in respect of their outstanding debt obligations.

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Originally published May 25, 2020.

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