Lydia Challen and Edward Jones Partner and Senior Associate respectively in Allen & Overy LLP's tax group continue our series on financing in the current climate
Things don't always go to plan. Once the debt finance has been raised what can be done if it becomes unaffordable? As fears of recession gather ground it seems inevitable that many companies — whether or not in the financial sector — will be feeling squeezed. Cash flows are tight especially for companies that took advantage of easy access to credit on the assumption that they could refinance when those obligations fell due. They may not be able to risk or support additional debt to tide them over. For many some form of balance sheet restructuring that reduces the costs of...
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Lydia Challen and Edward Jones Partner and Senior Associate respectively in Allen & Overy LLP's tax group continue our series on financing in the current climate
Things don't always go to plan. Once the debt finance has been raised what can be done if it becomes unaffordable? As fears of recession gather ground it seems inevitable that many companies — whether or not in the financial sector — will be feeling squeezed. Cash flows are tight especially for companies that took advantage of easy access to credit on the assumption that they could refinance when those obligations fell due. They may not be able to risk or support additional debt to tide them over. For many some form of balance sheet restructuring that reduces the costs of...
If you are not a subscriber, subscribe now to read this content.
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