Market participants expect liability management exercise (LME) activity to remain elevated as high interest rates, political risk and maturity walls push borrowers to consider restructuring options with creditors and third-party capital providers, allowing existing equity investors to retain their ownership, according to a recent Debtwire article.
“Now we have this interesting capital market, which is a combination of private credit, pockets of capital available from existing lenders and sponsors,” said Ryan Preston Dahl, chair of Ropes & Gray’s business restructuring group. “Companies have become much more adept at creating this sort of auction environment between those different and competing factions.”
Ryan also highlighted healthcare and technology, media and telecommunications (TMT) as two industries that could experience increased restructuring activity in 2025.
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