There has been a series of warnings of an upcoming financial
downturn; just too many strains on and impediments to the domestic
and global economy, with inflation galloping and interest rates
following, it seems – as the markets certainly believe
– a downturn is coming or is already here. That is why the
financial markets and central banks have responded with equal fear
and, and in the case of the central banks, they are deploying or
about to deploy their remaining might to avert recession or
minimise its effects. And in a financial downturn loans go into
default: What will lenders do?
Refinancing
Before the global financial crisis in 2007–2008, borrowers
typically refinanced their syndicated facilities a couple of years
before maturity. There was significant liquidity available and low
interest rates (i.e., cheap credit). While the financial crisis
caused a significant amount of company collapses (affecting smaller
companies more than larger ones) a lot of
