In tough times, funds are muscling out the banks
Lender-on-lender violence is being seen with increasing frequency as private debt firms show their willingness to be aggressive in stressed scenarios.
Expert analysis by Andy Thomson
With defaults on the rise, lawyers say they are seeing an increasing number of litigation and bankruptcy cases – bringing into sharp focus the interactions between different lender groups when a borrowing company’s future is in doubt.
In past downturns – most obviously the financial crisis of 2008 – the lender groups were mostly or exclusively comprised of banks. Now, syndications frequently include private debt funds – and they are bringing different dynamics to the negotiating table...