Exchange Offers Attractive But Risky, Attys Say

Law360, New York (September 23, 2009, 4:48 PM EDT) -- Exchange offers have proliferated as companies seek to lighten their balance sheets amid a difficult credit environment, but while the deals may seem like an attractive way to reduce liabilities, they require careful negotiating and can be sidelined by complications, attorneys say.

Numerous companies, including GMAC Financial Services, Harrah’s Entertainment Inc., Revlon Inc. and Citigroup Inc., have used or proposed using some form of exchange offer — either debt for debt, debt for stock or some kind of equity for another — to help deleverage themselves...
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