Facilitating Workouts With Registration Exemptions

Law360 (April 3, 2009, 12:00 AM EDT) -- A company having difficulty meeting its obligations under loan agreements may be able to resolve any defaults by issuing new securities to debt holders in exchange for their existing debt instruments.

Of course, this requires the cooperation and agreement of the company's debt holders or the approval of a bankruptcy court and most likely is a viable option only for businesses that are able to continue as a going concern after the exchange.

Companies considering a debt restructuring must carefully review the terms of their outstanding...
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