Bingham

Bingham

Not Your Father’s Debt Restructuring — Recent Developments in Restructuring Convertible Debt

May 24, 2011

Public companies that wish to pursue restructurings of outstanding debt must address a number of legal and business issues prior to launching any restructuring. This is particularly true for restructurings of convertible debt, which can be more complicated to structure and complete than restructurings of non-convertible debt. Developments over the last several years have provided more clarity with respect to certain of the restructuring issues issuers face with convertible debt. In this article, we review these developments by suggesting some initial questions any issuer should address in pursuing a restructuring, discussing recent developments with respect to these issues and providing an overview of implementation issues with respect to any convertible debt restructuring. For your convenience, we've provided this guidance both in a brief overview and in a full analysis.

For additional information, please contact your regular Bingham contact or the following lawyers:

John R. Utzschneider, Partner
john.utzschneider@bingham.com
617.951.8852 (Boston)
212.705.7637 (NY)

Gitte J. Blanchet, Counsel
gitte.blanchet@bingham.com
617.951.8211

Circular 230 Disclosure: Internal Revenue Service regulations provide that, for the purpose of avoiding certain penalties under the Internal Revenue Code, taxpayers may rely only on opinions of counsel that meet specific requirements set forth in the regulations, including a requirement that such opinions contain extensive factual and legal discussion and analysis. Any tax advice that may be contained herein does not constitute an opinion that meets the requirements of the regulations. Any such tax advice therefore cannot be used, and was not intended or written to be used, for the purpose of avoiding any federal tax penalties that the Internal Revenue Service may attempt to impose.

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