Hints and tips:
...Liquidators and Pallas are still working to “assess whether there are any matters that might lead to a recovery for the benefit of creditors, such as potential claims that may be brought against parties...
...Its rivals could easily outmanoeuvre it in the market recovery with their relatively healthier coffers....
...US hedge fund Fir Tree Partners confirmed to the Financial Times that it had issued the acceleration notice and was committed to “commencing proceedings against SBB for recovery of the debt”....
...The panellists in Miami offered a range of tips on how to avoid history repeating itself — among them, not allowing majority-owned or controlled companies the same covenant flexibility as public companies...
...In a reflection of how poorly the former HBOS loans were structured, and the faint prospects of recovery, Lloyds wrote the Barclays’ debt down on its balance sheet....
...For BDC investors, it takes a lot of work and knowledge to assess the underwriting capacity of a BDC manager — collecting and assessing default and recovery rates is hard....
...But covenants cannot magically protect you if a business blows up and the assets are de minimis. When there is a default, the recoveries are probably often going to be limited....
...The holders of the new debt tranche created in 2020 are now set to take control of the reorganised Serta with the deprived group only to get a modest recovery....
...several ways to move in this direction, such as legislation, new contractual loan clauses to make inter-creditor duties explicit, or simply court decisions to interpret implied “good faith and fair dealing” covenants...
...It’s hard to feel terribly confident about the strength of either a deal recovery or a UK comeback at this stage....
...Martin told the FT that “every hospitality company has had to deal with” covenant waivers....
...The buyouts simplify corporate cash flow and improve the covenant of scheme members and pensioners....
...“It will be interesting to see what recovery rates look like and what leverage is hidden there.”...
...The next recovery might not be as profitable as the last one....
...Today, nearly 100 per cent of the loans private funds use to finance buyouts are “covenant lite”— condition free — up from about zero per cent a decade ago....
...Meanwhile, recovery in cruise bookings has lagged. Last month, the Miami-based company reported a net loss of $770mn for its fiscal third quarter....
...But even more threatening to recovery values is the fact that this will be the first debt crisis in which China holds the whip hand....
...discharge to the Russian Federation to the extent of the US dollar amount which the recipient is able to purchase with the amount so received or recovered in that other currency on the date of that receipt or recovery...
...BUY: PureTech (PRTC) A share price recovery has restored PureTech’s lustre, while the subsidiaries are still pouring out cash, writes Julian Hofmann....
...Limited covenant protection in many transactions increases the risks....
...It marks the latest chapter in AMC’s remarkable recovery after the bleak early days of the pandemic....
...Cineworld has secured $200m in additional loans to see it through the post-Covid recovery period after the pandemic brought the cinema group to the brink of bankruptcy at the end of last year....
...“Our new powers should not be of concern to sponsoring employers who treat pension schemes fairly, for example by setting prudent dividends depending on covenant strength,” it said....
...It is weighed down by £19bn of debt, which includes some cash-flow covenants that were waived during the pandemic....
...The airport, which has £4.8bn in liquidity, forecasts passenger numbers to recover to 21m for 2021 as more people fly, but has asked its creditors to extend a waiver on a covenant threatened by the business...
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