The Rise In Debt For Equity Swaps Structured Through Jersey

Partner Bruce MacNeil and managing associate James Lydeard at Ogier observe what makes the use of Jersey-incorporated acquisition and holding vehicles attractive for international restructuring transactions featuring debt for equity swaps, amid the emergence of a growing trend.

The use of Jersey as a jurisdiction of choice for restructurings involving debt for equity swaps has been growing – particularly for restructurings of UK and international corporate groups. While no doubt driven in part by the current economic environment, it marks a continuing trend, with a number of debt for equity restructuring transactions having taken place in the last 12 months involving a Jersey structure.