Law and Practice of Liability Management
Subtitle: Debt Tender Offers, Exchange Offers, Bond Buybacks and Consent Solicitations in International Capital Markets
Publisher: Cambridge University Press
Published: 2014
Language: eng
Number of pages: 326
ISBN-13: 9781107020344
Subjects: Capital market; Debt; Securities; Credit; Investments
Description: "Tender offers, exchange offers and consent solicitations in connection with debt securities are important instruments of corporate restructurings, corporate rescues, recapitalisations and other types of liability management of public and private companies. Although tender offers for shares, stocks and other equity securities are covered by a vast literature on public mergers, takeovers and acquisitions, the literature on liability management transactions for debt securities is scarce. Law and Practice of Liability Management rectifies this by providing a systematic treatise of the law relating to this significant aspect of the global capital market. It guides students and professionals through the complex legal and regulatory requirements applicable to these transactions, the increasing regulatory interest by the world's leading financial regulatory authorities, and recent innovations in the structuring, legal techniques and execution of the relevant transactions in international capital markets"--

"As the issuer of debt securities in the capital markets and its advisors are preparing for the customary celebratory closing dinner following the issuance of the securities to investors and the successful completion of an intense and (probably) expensive capital markets project, a liability management transaction for those same securities is probably the last thing on their minds. It is entirely unromantic for any newly wedded couple to be discussing the advantages and disadvantages of a divorce or going through the provisions of a nuptial agreement as they are boarding a flight, holding hands, to their honeymoon destination. And yet, honeymoons never last for ever and marriages often come to a sudden end as well. For the issuer of debt securities that had once been issued and celebrated with a lot of fanfare, the equivalent of a messy divorce from its hapless investors takes the form of a liability management transaction against the background of the issuer's or its controlling shareholders' new financing or strategic plans and, in the worst case, against the background of considerable financial stress and the risk or the reality of bankruptcy"--