Bond restructurings Implementation mechanisms: schemes vs. exchange offers December 2015 ■ a principal haircut; ■ extended maturity; and / or ■ a change in coupon (rate and/or whether the coupon is cash-pay or PIK). Exchange offers are based entirely on voluntary participation. They can only succeed if a critical mass of bondholders agrees to participate. A “carrot and stick” approach is used to incentivise participation and penalise holdouts. For background on the use of schemes of arrangement as restructuring tools, see here.

This article has been contributed to the blog by Ziyi Shi.  Ziyi Shi is an associate cross-appointed to the Corporate Group and Insolvency and Restructuring Group of Osler, Hoskin & Harcourt LLP.

This article has been contributed by Martin Desrosiers and Julien Morissette, partner and associate respectively, in the Insolvency & Restructuring Group of 

This article has been contributed to the blog by Joshua Hurwitz, an Associate of the Insolvency & Restructuring group at Osler, Hoskin & Harcourt and Jaime Auron, an Articling Student at Osle

This article has been contributed by Julien Morissette, associate in the Insolvency & Restructuring and Litigation groups of Osler, Hoskin & Harcourt LLP.

This article has been contributed to the blog by Mary Paterson, Dave Rosenblat and Waleed Malik.

This article has been contributed to the blog by Patrick Riesterer and Waleed Malik.

This article has been contributed to the blog by Andrea Lockhart, an Associate in the Insolvency and Restructuring Group of Osler, Hoskin & Harcourt LLP, and Mary Angela Rowe, an Articling Stu

In lengthy insolvency proceedings, interest accrued on existing claims during the “post-filing” period can represent a substantial portion of the debtor’s estate.

Introduction