Restructuring Corporate Bonds: A Menu Of Options

Law360, New York (June 21, 2012, 5:52 PM EDT) -- Companies that have issued bonds in the U.S. capital markets need to consider a variety of U.S. securities law issues when contemplating a restructuring transaction with bondholders. A company’s restructuring choices depend to some extent on whether or not the company has access to cash.

Where cash is available, either from internal funds, new financing, or both, a company can consider an optional redemption, open market purchases or a cash tender offer. Without cash, the most likely alternative is an exchange offer of new securities for...
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