ABI Journal: Best Tips for Agents and Trustees Dealing with Distressed Assets

七月 1, 2020

O’Melveny partners Jennifer Taylor and Evan Jones and counsel Joshua Chow co-authored this article providing best practices for agents and trustees dealing with distressed assets. “As the COVID-19 crisis stretches on and falling revenues mean that many companies will be unable to meet debt covenants or repayment schedules, administrative agents in the bank-financing context and trustees in the bondmarket context will find themselves in the midst of a wave of loan modifications,” Taylor, Jones, and Chow wrote. “In this environment, borrowers are engaging with their lenders and bondholders in seeking increasingly material (and potentially creative) alterations to the terms of their debt. As these often-fast-moving proposals are being negotiated, agents and trustees might be called upon to take action, with potentially substantial consequences to the rights of their constituents. This article will give guidance on best practices for agents and trustees in order to minimize exposure to liability resulting from those actions taken during the COVID-19 crisis or any other distress context.”

ABI Journal subscribers can read the full article here.