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ARTICLE · 20 DECEMBER 2017

Deleveraging to control

Clayton Utz
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New innovative structures are being utilised to delever distressed Australian companies in order to control transactions. .

AustraliaCorporate/Commercial Law
Timothy Sackar
Timothy Sackar
Ashleigh Kable
Ashleigh Kable
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As deleveraging to control transactions continue to be part of the legal landscape in Australia, we anticipate seeing further examples, particularly where the distressed company is a listed entity.

As the restructuring landscape in Australia continues to develop we are seeing new and innovative structures being utilised to delever distressed Australian companies. In particular, a deleveraging of debt coupled with an issue or transfer of equity continues to be a favoured and useful path for investors seeking to gain control. Whether you refer to it as "loan to own", a "debt for equity swap" or something else, there are a number of structures being used to implement these transactions.

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