Restructuring Outstanding Debt Securities Chart

Summary

This chart shows the key advantages and disadvantages of different methods to restructure outstanding debt securities. Attorneys counseling companies considering debt security restructuring may use this chart to determine which alternative is best for them. Companies restructure their existing debt securities for a variety of reasons, which may include lowering the interest rate or eliminating cash interest expense, eliminating certain covenants or garnering more favorable covenants, capitalizing on market discounts in trading of the securities as compared to par value, extending the maturity date and decreasing leverage.