Restructuring Alternatives for High Yield Bonds
Evaluating and Using Exchange Offers and Prepacks to Avoid Bond Default
Recording of a 90-minute CLE teleconference with Q&A
Conducted on Wednesday, July 29, 2009
Recorded event now available
This seminar will examine the restructuring alternatives available for high yield bonds, legal considerations when restructuring, and strategies for choosing and implementing the various alternatives.
Description
High yield bonds have long been a financing source for corporations and in leveraged buyouts. High yield bonds — commonly known in the past as junk bonds — typically pay higher returns than better quality bonds, which make them attractive to investors. However, they carry a higher risk of default.
Moody's predicts that 15% of high yield debt issuers will default this year, compared to a 4% average historically. Because refinancing options are limited in the current economy, issuers are restructuring outstanding bonds to preserve the value of their businesses and avoid bankruptcy.
Restructuring high yield bonds is a complex process involving multiple bondholders, specialized investors and intercreditor issues. Counsel advising issuers should cautiously consider the restructuring alternatives and understand the advantages and legal risks of each.
Listen as a panel of corporate finance and restructuring attorneys examines the restructuring alternatives available for high yield bonds, legal issues to consider in restructuring, and best practices for implementing the various alternatives.
Outline
- Restructuring alternatives — benefits, risks, implementation strategies
- Exchange offers
- Prepackaged plan of reorganization
- Prenegotiated plan of reorganization
- Legal considerations when restructuring
- Impact on issuer’s operations (trade creditors, suppliers, customers)
- Court confirmation of prepackaged or prenegotiated plan
- Disclosure issues
Benefits
The panel will review these and other key questions:
- How has the economic downturn impacted issuers of high yield debt?
- What are the advantages and disadvantages of using exchange offers as a restructuring alternative?
- How can prepacks be used to restructure defaulting high yield debt?
- What impact does restructuring have on an issuer's business operations?
Faculty
Paul E. Harner,
Partner
Paul Hastings Janofsky & Walker, Chicago
He focuses on corporate bankruptcy, restructuring and other insolvency-related matters. He has represented debtors, committees and other parties and has played leading roles in large national and international corporate restructurings. He has extensive experience representing bank groups, institutional investors, secured lenders and other parties in bankruptcy, workouts and related litigation.
Scott R. Saks,
Partner
Paul Hastings Janofsky & Walker, New York
He has extensive experience with securities, capital markets and corporate transactions representing underwriters, financial institutions and corporations in public and private securities offerings, including: equity, ADR, GDR and high-yield and investment-grade debt offerings; U.S. securities exchange listings and SEC registrations; acquisitions and dispositions; and private equity investments.
William F. Schwitter,
Partner
Paul Hastings Janofsky & Walker, New York
He is Chair of the firm’s Leveraged Finance Practice Group. He has a diversified corporate practice with extensive experience in the areas of corporate finance and securities law. He represents a number of investment banks in both debt and equity transactions. His work covers a variety of industries, including media, telecommunications, retail, gaming and heavy manufacturing.
Ordering
Recorded Event
Includes full event recording plus handouts (available after live seminar).
CLE: Pre-approved for self-study credit in AK, AZ, CA, CT*, MO, MT, NY*, TX, VT, WA. Upon request, self-study credit is also available in: CO, FL, GA, ID, KY, LA, ME, ND, NE, NH, NM, NV, OR, UT, WI, WV, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com. (*For CT and NY, Strafford needs to process the CLE — see below to purchase this option.)
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Available ten business days after the live event
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CLE Credit
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Customer Reviews
The program was very to the point — no fluff.
Brian McNamara
Wright Lindsey & Jennings
The program provided good legal references, good bullet points and good scope.
Tim Thomas
Kolesar & Leatham
The presentation and handouts were very informative. And it allowed me to attend a CLE without leaving the office.
Bill Pemerton
Horton Maddox & Anderson
Convenient and well-organized. Well-run program.
Michael V. Kruljac
IMERYS
The speakers were well versed and kept my attention throughout the program.
Natalie Kossak
Independent Fiduciary Services
Finance Law Advisory Board
Partner
Paul Hastings
Partner
Gibson Dunn & Crutcher
Partner
Nixon Peabody
Partner
Alston & Bird
Counsel
Mayer Brown
Partner
O’Melveny & Myers