Lenders urged to deploy 'carrot and stick' early on debt restructuring

The weak state of investor protections on leveraged loans should spur creditors to engage borrowers early on debt restructuring, two lawyers have argued. The abundance of cov-lite deals mean traditional early warning signs have evaporated.

  • By Karoliina Liimatainen
  • 08 Aug 2019

Ian Wallace and Christian Pilkington, both partners at White & Case, said that lenders should pressure indebted companies' boards of directors and present a plan for early-stage restructuring before they collapse into insolvency.

They argue that this sort of intervention is necessary because the maintenance covenants, that ...

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Bookrunners of European Leveraged Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Deutsche Bank 7,517.46 42 6.58%
2 BNP Paribas 7,317.76 54 6.40%
3 Goldman Sachs 7,236.80 38 6.33%
4 Credit Agricole CIB 6,744.91 37 5.90%
5 Barclays 6,209.03 28 5.43%

Bookrunners of European HY Bonds

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Citi 4,728.01 24 9.17%
2 JPMorgan 3,649.83 29 7.08%
3 Deutsche Bank 3,638.27 22 7.05%
4 Barclays 3,441.80 22 6.67%
5 Goldman Sachs 3,389.62 26 6.57%

Bookrunners of Dollar Denominated HY Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 18,847.11 143 9.43%
2 JPMorgan 18,279.02 147 9.15%
3 Goldman Sachs 14,831.56 109 7.42%
4 Bank of America Merrill Lynch 14,255.85 117 7.13%
5 Morgan Stanley 12,912.93 86 6.46%