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Special Situations & Liability Management

Restructuring Options Before a Situation Becomes a Formal Insolvency

Averites advises companies, boards, lenders, sponsors and investors when existing financing arrangements no longer provide sufficient liquidity or flexibility and the capital structure requires adjustment.

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OUR APPROACH

How We Advise on Special Situations and Liability Management

  1. A Stressed Financing Doesn’t Always Mean Formal Insolvency

    A stressed financing does not necessarily require a formal insolvency proceeding. Many situations can be addressed through refinancing, amendments, maturity extensions, covenant resets, new-money financing, debt exchanges, debt buybacks, recapitalizations or other liability management transactions.

  2. What Determines the Right Strategy

    The appropriate strategy depends on the company’s liquidity position, debt maturity profile, collateral structure, creditor composition and available negotiating leverage.

  3. Starting With the Existing Financing Arrangements

    We begin by analyzing the existing financing arrangements and capital structure to determine which actions are contractually available, which creditor approvals may be required, and how different alternatives would affect the relative positions of stakeholders.

  4. Liability Management Transactions We Advise On

    We advise on amendments and waivers, covenant relief, maturity extensions, refinancings, new-money facilities, debt-for-equity arrangements, exchanges and other transactions designed to improve liquidity, reduce leverage or create additional time for the business to implement a broader restructuring.

  5. Advising Lenders and Credit Investors

    For lenders and credit investors, we advise on protecting existing priority and collateral, assessing proposed amendments or new financing and evaluating alternatives if a consensual restructuring cannot be achieved.

  6. Opportunities for New Investors in Special Situations

    Special situations can also create opportunities for new investors. Averites advises on distressed and opportunistic investments, purchases of debt or equity positions, rescue financing and transactions involving businesses or assets experiencing financial stress.

  7. A Coordinated Team for Fast-Moving Situations

    These matters often move quickly and involve competing legal and economic interests. Our Finance, Corporate, Tax and Dispute Resolution teams work together to assess the transaction structure, creditor rights, potential challenges, and available enforcement alternatives before implementing a strategy.

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Precision across borders. Book a Meeting

New York c/o Chornous Law PLLC
30 Wall Street, 8 Floor
New York, NY 10005 Phone: +1 650 382 7764
London 124 City Road
London, England
EC1V 2NX Phone: +44 7405 138109
Kyiv 11 Panasa Myrnoho Street
Office 1/1
Kyiv, 01011 Phone: +380 63 148 27 37

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FAQ

Frequently Asked Questions

  • No. A stressed financing does not necessarily require a formal insolvency proceeding. Many situations can be addressed through refinancing, amendments, maturity extensions, covenant resets, new-money financing, debt exchanges, debt buybacks, recapitalizations or other liability management transactions.

    • The appropriate strategy depends on the company’s liquidity position, debt maturity profile, collateral structure, creditor composition and available negotiating leverage.

      • We begin by analyzing the existing financing arrangements and capital structure to determine which actions are contractually available, which creditor approvals may be required, and how different alternatives would affect the relative positions of stakeholders.

        • We advise on amendments and waivers, covenant relief, maturity extensions, refinancings, new-money facilities, debt-for-equity arrangements, exchanges and other transactions designed to improve liquidity, reduce leverage or create additional time for a broader restructuring.

          • Both. For lenders and credit investors, we advise on protecting existing priority and collateral, assessing proposed amendments or new financing and evaluating alternatives if a consensual restructuring cannot be achieved.

            • Yes. Averites advises on distressed and opportunistic investments, purchases of debt or equity positions, rescue financing and transactions involving businesses or assets experiencing financial stress.

              • These matters often move quickly and involve competing legal and economic interests. Our Finance, Corporate, Tax and Dispute Resolution teams work together to assess the transaction structure, creditor rights, potential challenges, and available enforcement alternatives before implementing a strategy.