Putting Your Knowledge to Active Use – LBO Restructuring Case Study

On October 24, 2008, Cleary Gottlieb associate Christophe Schauenburg presented at the the “Distressed Assets Boot Camp: The Full 360º View - Effectively Navigating the Market for Distressed Assets.” 

The case study discussed legal issues, restructuring tools and solutions in the context of the different stages of a typical LBO restructuring.

The presentation covered the time period between a default of the borrower under the financing arrangements and the completion of a restructuring process in the course of which the lenders take (partial) control over the borrower/target.

The case study was based on the restructuring of a German borrower to allow a discussion of specific German law issues that may become relevant in the course of a restructuring process. Many of these issues, however, are also relevant in other jurisdictions.

Questions that were discussed in this context include:

• What preparatory measures can be taken by the various parties?
• Which parties pursue which interests in the negotiations?
• What legal issues may arise in the different stages of the transaction?
• What decisions need to be taken by whom?
• What legal techniques are available to resolve which problems, in particular:
     - out-of-court restructuring vs. restructuring in insolvency
     - CoMI migration – pros and cons
• How can legal techniques be used to reach a certain result in the negotiations?
• How to document a deal?
• What you should know about German law when participating in a German restructuring?

For more information on this event, click here.