A Close Look At The Different Forms Of Exit Financing

Law360, New York (April 09, 2014, 3:21 PM ET) -- A debtor can obtain exit financing by issuing debt or equity, or both. Many debtors feel that they are at the mercy of the credit markets when it comes to negotiating an exit facility. However, with proper foresight and planning, a debtor can substantially improve its prospects for obtaining successful exit financing.

Whenever possible, a corporate borrower should begin working with its restructuring advisers on exit financing even before entering Chapter 11. Many companies have been able to formulate a plan that includes exit financing before...
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