Debt equity swaps - an alternative form of corporate rescue
Charles Wilson of City law firm Trowers & Hamlins LLP explains the increasingly popular form of corporate restructuring; the debt equity swap.
In the current economic climate, certain companies with substantial bank borrowings have been hit by the lethal combination of a decline in demand and a tightening of banks' lending conditions. For some companies this has meant insolvency, while others have restructured successfully.
One increasingly used type of restructuring is the debt equity swap.