IMO ruling deals potential blow to mezzanine lenders
Europe’s junior debt holders were dealt a potential blow on Tuesday when the UK’s High Court approved a restructuring plan for IMO Car Wash that leaves the company in the hands of senior lenders and wipes out subordinated creditors. The court rejected mezzanine investors’ claims that the borrower was undervalued by senior lenders, a ruling that could weaken the position of junior debt holders in future restructurings.
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