Educational Session
DIP Financing
Financiamento de Empresas em
Recuperação
DIP Financing (Financiación del “deudor
en posesión”)
EDUCATIONAL SESSION
CURRICULUM VITAE
Kolja von Bismarck
Clifford Chance
Frankfurt am Main, Germany
[email protected]
Kolja von Bismarck has been a partner at Clifford Chance since 1997 and
heads the German Restructuring & Insolvency Group. He was admitted to
the Bar in 1989 and spent two years as a management consultant with a
leading strategic consultant in Germany, focusing on turnaround situations.
His practice focuses on Financial Restructuring and Insolvency with a
cross-border element. He is consistently advising either creditors or debtors on in- and out-of-court
restructuring issues. Kolja is a member of the insolvency committee of the German Bar Association
(Insolvenzrechts-Ausschuss des Deutschen Anwaltsvereins), a regular speaker on national and
international conferences focusing on cross-border workout issues and member of a panel of
experts advising the German government on insolvency law reforms. He is consistently rated as
one of the leading individuals in his field of practice. Recent relevant experience includes advising:
ƒ
Several leading automobile manufacturers (OEMs) against the background of the crisis of core
suppliers
ƒ
a leading Hollywood-Studio on issues arising from the insolvency of KirchMedia
ƒ
a leading Energy Supplier on issues arising from the insolvency of the Babcock Group
ƒ
a group of lenders on the debt-restructuring of Primacom AG
ƒ
a leading financial investor on the acquisition and the subsequent sale of a distressed German
retail Group
ƒ
a leading Japanese manufacturer of consumer electronics on the winding-down of its German
operations
ƒ
leading German insolvency administrators on questions of corporate law in insolvency
proceedings and cross-border issues
as well as acting as arbitrator in insolvency-related arbitration proceedings.
Kolja von Bismarck é um parceiro do Clifford Chance desde 1997 e é chefe do nosso Grupo
Alemão de Reestruturação e Insolvência. Ele foi admitido no exame da ordem em 1989 e passou
dois anos como consultor gestor dando consultoria estratégica na Alemanha, com o foco em
situações de recuperação de empresas.
Sua prtica tem ênfase em Insolvência e Reestruturação Financeira com um elemento
internacional. Ele presta assessoria tanto a credores como a devedores em casos de
reestruturação em juízo ou fora dele. Kolja é membro do comitê da Ordem de Advogados da
Alemanha (Insolvenzrechts-Ausschuss des Deutschen Anwaltsvereins), palestra com freqüência
em conferências nacionais e internacionais, concentrando-se em trabalhos de negociação entre
países. Ele é membro de um painel de especialistas que presta assessoria ao governo alemão
para reformas na lei de insolvência. Com freqüência, é classificado como um dos principais
profissionais em sua área de atuação. Dentre as experiências mais recentes em assessoria
incluem-se:
ƒ
Várias empresas líderes do ramo automobilístico, no contexto da crise dos principais
fornecedores
ƒ
Um importante estúdio de Hollywood, em questões relacionadas à insolvência da KirchMedia
ƒ
Um reconhecido Fornecedor de Energia, em questões relacionadas à insolvência do Grupo
Babcock
ƒ
Um grupo de credores da reestruturação da dívida de Primacom AG
ƒ
Um investidor financeiro de liderança no Mercado, na aquisição e subseqüente venda de um
grupo alemão de varejo desvalorizado.
ƒ
Um importante fabricante de eletrônicos japonês, na ocasião do encerramento das operações
na Alemanha.
ƒ
Reconhecidos administradores de insolvência alemães, em questões relacionadas ao direito
corporativo, em processos de insolvência e questões internacionais.
Ele também atua como árbitro em processos de arbitragem relacionados a insolvência.
EDUCATIONAL SESSION
Luis de Lucio
Alvarez & Marsal
São Paolo, Brazil
[email protected]
Luis de Lucio, a Managing Director with Alvarez & Marsal Latin America,
brings more than 18 years of experience to the firm. He specializes in
business evaluations, business plan development and financial strategies
for corporate restructurings, turnarounds and mergers and acquisitions.
Mr. de Lucio has advised shareholders and lenders in all major Latin
American markets across various industry sectors, including infrastructure, transportation,
hospitality, telecommunications, technology, financial services, healthcare, manufacturing and
consumer products.
Most recently, he served as the senior advisor to Brazilian airline Varig in the country's first major
corporate restructuring under a new Corporate Recovery Law. He has been involved in numerous
restructuring cases such as Parmalat Latin America, Light (utility), AT&T Latin America, a major
textile operation in Mexico, a major tannery in Brazil, and the largest airport in Central America.
Prior to joining A&M, Mr. de Lucio served as a senior advisor with Darby Overseas Investments
Ltd., a venture capital and private equity private investment firm with interests in Latin America. Mr.
de Lucio was also a senior member of Ernst & Young's Corporate Finance Group, based in both
the U.S. and Latin America, where he oversaw the firm's Corporate Finance practice from Sao
Paulo, Brazil. Mr. de Lucio began his career and spent five years as a commercial banker at a
predecessor of Bank of America in the U.S.
Mr. de Lucio earned a bachelor's degree in economics from the University of Maryland, and holds
a master's degree in business administration from the American University in Washington, D.C. Mr.
de Lucio speaks fluent English, Spanish and Portuguese.
Luis de Lucio, é um Managing Director da Alvarez & Marsal, com mais de 20 anos de experiência
assessorando credores e investidores na região. Sua experiência inclui reestruturações financeiras
e operacionais no Brasil e nos principais países da América Latina.
Sua experiência na A&M inclui a reestruturação da Varig, assessoria ao Conselho de
Administração da Usaciga, estratégia de reestruturação de uma das empresas líder na produção
de couro no Brasil, Aeroporto Internacional de San Jose (Assessor ao Credor), líder no setor têxtil
no México, Parmalat (Brasil, Argentina e Chile), AT&T Latin America e Light.
Sr. De Lucio assessorou acionistas e credores nos principais mercados latino-americanos em
várias indústrias, incluindo infra-estrutura, transportes, hospitais, telecomunicações, tecnologia,
serviços financeiros, healthcare, e bens de consumo.
Antes de ingressar na Alvarez & Marsal, Sr. De Lucio era um consultor de reestruturação e
assessor de negócios para a Darby Overseas; era um membro do grupo de Corporate Finance da
Ernst & Young nos EUA e na América Latina; começou a carreira como um banqueiro numa
instituição absorvida pelo Bank of America.
Sr. de Lucio é formado em Economia pela University of Maryland, e possui um MBA pela American
University in Washington DC. Luis de Lucio fala fluentemente inglês, espanhol e português.
EDUCATIONAL SESSION
Salvatore Milanese
KPMG Corporate Finance
São Paulo, Brazil
[email protected]
Partner, Restructuring Practice, Brazil
- Leader of the practice of restructuring and recovery of companies of
KPMG in Brazil
- Leader of the practice of NPLs (transactions involving defaulted credit
portfolio) of KPMG in Brazil
Qualifications:
ƒ
Degree in Finance from the Università Degli Studi di Messina – Italy (1997), with MBA in
Finance from CUOA – Italy (1999).
ƒ
Post-Graduate Degree in Administration – Budget and Control in Industries and Banks from the
Università Commerciale Luigi Bocconi – Italy (2000).
ƒ
Accredited from KPMG as executive of restructuring and recovery of companies, attending
formal courses on Financial and Operational Restructuring and Cash and Crises Management
from KPMG and other institutions (INSOL and ABI) in Brazil and abroad.
ƒ
Salvatore also attends various lectures and seminars on restructuring and recovery of
companies, organized by the Brazilian Institute of Management and Turnaround (IBGT), of
which he is a member of the executive committee, and organized by several other
organizations in Brazil and abroad (INSOL, ABI etc.).
Experience:
ƒ
Before KPMG, Salvatore worked at Bayerische Private Bankers, as credit analyst, with the
team of Emerging Markets, and at Duff & Phelps Credit Rating Co., as rating analyst. He also
worked at Banca Commerciale Italiana (currently Intesa Sanpaolo), participating in various
projects of restructuring and acquisition in the European Union, in East Europe and Latin
America.
ƒ
Since May 2002 he has been working full time in the Restructuring department at KPMG in
Brazil, leading various financial and operational restructuring processes, crisis management
processes to cash management in a financial crisis situation, planning and implementation of
turnarounds, restructuring processes in judicial and extrajudicial recovery procedures,
renegotiation of debts for the management of communication processes with
financial/operational creditors and unions, fund raising and sale of assets.
ƒ
Salvatore has also been leading transactions and operations involving non-performing loan
portfolios (NPLs), and KPMG is one of the market leaders in this practice in Brazil.
Specialization Sector:
Banks, insurance companies, food and beverage, IT, air transport, construction, retail and
collection services.
EDUCATIONAL SESSION
Salvatore Milanese
KPMG Corporate Finance
São Paulo, Brazil
[email protected]
Sócio, Restructuring Practice, Brasil
- Líder da pratica de reestruturação e recuperação de empresas da KPMG no Brasil
- Líder da pratica de NPLs (transações envolvendo carteiras de créditos inadimplidos) da KPMG
no Brasil
Qualificações:
ƒ
Formado em Finanças pela Universidade de Messina - Itália (1997) com MBA em Finanças
pela CUOA (Consórcio Universidade de Veneza) - Itália (1999).
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Pós-graduado em Administração - Orçamento e Controle em empresas industriais e bancos
pela Universidade Bocconi - Itália (2000).
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Possui “Accreditation” pela KPMG como executivo de reestruturação e recuperação de
empresas, tendo participado em cursos formais de Reestruturação Financeira, Operacional,
Cash and Crises Management pela KPMG e outras instituições (INSOL e ABI) no Brasil e no
exterior.
Salvatore participa também em varias palestras e seminários sobre reestruturação e recuperação
de empresas organizados pelo IBGT (Instituto Brasileiro de Gestão e Turnaround), do qual é
membro do comitê executivo e de varias outras organizações no Brasil e no Exterior (INSOL, ABI,
etc.).
Experiência:
ƒ
Salvatore trabalhou no Bayerische's Private Bankers como analista de credito atuando com o
time de Mercados Emergentes e na Duff & Phelps Credit Rating como analista de rating. Atuou
na Banca Commerciale Italiana (atualmente Banca Intesa-San Pauloi), participando de vários
projetos de reestruturação e aquisição na União Européia, no Leste Europeu e na América
Latina.
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Trabalha desde maio de 2002 full time na área de Restructuring da KPMG no Brasil, tendo
liderado inúmeros processos de reestruturação operacional e financeira, processos de gestão
de crise a administração de caixa dentro de situação de crise financeira, planejamento e
implementação de turnarounds, processos de reestruturação dentro de procedimentos de
recuperação judicial e extra-judicial, renegociação de dividas a administração do processos de
comunicação com credores financeiros/operacionais e sindicatos, captação de recursos e
venda de ativos.
ƒ
Salvatore tem liderado também transações e operações envolvendo soluções para “carteiras
de créditos inadimplidos” (NPLs – Non-Performing Loans), pratica na qual a KPMG é líder de
mercado no Brasil.
Setor especialização:
Bancos, seguradoras, alimentos e bebidas, TI e transporte aéreo, construção, varejo,
serviços de cobrança.
EDUCATIONAL SESSION
James H. M. Sprayregen
Kirkland Ellis LLP
Chicago, USA
[email protected]
James Sprayregen is a Restructuring partner in the Chicago and New York
offices of Kirkland & Ellis LLP.
Mr. Sprayregen is recognized as one of the country's outstanding
restructuring lawyers. Mr. Sprayregen has extensive experience
representing major U.S. and international companies in and out of court as
well as buyers and sellers of assets in distressed situations. He also has experience advising
boards of directors, and generally representing domestic and international debtors and creditors in
workout, insolvency, restructuring, and bankruptcy matters. Mr. Sprayregen returned to Kirkland &
Ellis in December 2008. He rejoined the Firm after nearly three years with Goldman Sachs, where
he was co-head of Goldman Sach's Americas Restructuring Group and helped lead Goldman
Sach's practice advising clients in restructuring and distressed situations. Prior to joining Goldman
Sachs, Mr. Sprayregen spent 16 years at Kirkland & Ellis, where he led some of the most complex
chapter 11 bankruptcy cases in recent history, including for United Airlines, Conseco, NRG Energy,
and TWA Corp., among others.
Mr. Sprayregen is a frequent lecturer, speaker, and panel moderator and has also published
numerous articles on insolvency, fiduciary duty and distressed M&A issues. He earned a J.D. from
the University of Illinois College of Law and a B.A. from the University of Michigan.
James Sprayregen é um parceiro de reestruturação nos escritórios da Kirkland & Ellis LLP em
Chicago e Nova Iorque.
Mr. Sprayregen é reconhecido como um dos mais proeminentes advogados de reestruturação do
país. O Sr. Sprayregen tem ampla experiência na representação de grandes empresas
americanas e internacionais em juízo ou fora dele, bem como na representação de compradores e
vendedores com ativos desvalorizados. Ele possui experiência em assessoria a diretorias de
empresas, e também na representação de credores e devedores domésticos e internacionais em
questões relacionadas a negociações, insolvências, reestruturações, e falências. O Sr. Sprayregen
voltou para a Kirkland & Ellis em dezembro de 2008. Ele voltou à empresa após cerca de três anos
com a Goldman Sachs, onde dividiu a chefia do Grupo de Reestruturação da Goldman Sachs nas
Américas. Lá, ele também trabalhou com assessoria a clientes da Goldman Sachs em situação de
reestruturação e de desvalorização. Antes de ser contratado pela Goldman Sachs, o Sr.
Sprayregen passou 16 anos na Kirkland & Ellis, onde liderou alguns dos mais complexos casos de
falência prevista no Capítulo 11 [da Lei de Falência dos EUA] dos últimos tempos, incluindo
empresas como United Airlines, Conseco, NRG Energy, e TWA Corp., dentre outras.
O Sr. Sprayregen está sempre atuando como palestrante e moderador de painéis e já publicou
diversos artigos sobre insolvência, obrigações fiduciárias e fusões e aquisições de empresas
desvalorizadas. Seu título Juris Doctor é da Escola de Direito da Universidade de Illinois
(University of Illinois College of Law) e graduou-se como Bacharel na Universidade de Michigan
(University of Michigan).
EDUCATIONAL SESSION
Antonio Toro
PricewaterhouseCoopers
São Paulo, Brazil
[email protected]
Antonio Toro has been the partner responsible for business recovery
services at PricewaterhouseCoopers in Brazil since 2001. In this role, he
has advised debtors, creditors, shareholders and management on several
in-court and out-of-court financial and operational restructurings, in
industries such as media, telecoms, energy, wood and furniture, textile,
food, chemicals and others. His 25-year professional experience with PricewaterhouseCoopers
also includes mergers and acquisitions, valuations, due diligence, feasibility studies and auditing.
Mr Toro has a degree in accounting from Universidade de São Paulo, and has participated in
executive programmes on advanced restructuring at Harvard Business School and INSEAD. He is
often invited to lecture at seminars, events and training sessions on corporate restructuring in
Brazil.
Mr Toro has been appointed in 2004 as a member of Fórum de Líderes Gazeta Mercantil as a
leader in the Brazilian services industry following a poll in the Gazeta Mercantil, one of the most
prestigious business newspapers in Brazil.
Antonio Toro é responsável pelos serviços de recuperação de empresas da Pricewaterhouse
Coopers no Brasil desde 2001. Nesse papel, assessorou devedores, credores, acionistas e
administradores em várias reestruturações operacionais e financeiras, no ambiente judicial ou fora
dele. Entre os segmentos com os quais se envolveu estão açúcar e álcool, varejo, siderurgia,
têxtil, alimentos, mídia, telecomunicações, energia, madeira e móveis e produtos químicos, entre
outros. Sua experiência de mais de 25 anos com a PricewaterhouseCoopers também inclui fusões
e aquisições, avaliações, due diligence, estudos de viabilidade e auditoria. Toro é formado em
Contabilidade pela Universidade de São Paulo, e participou em programs executivos de
reestruturação avançada na Harvard Business Scholl e no INSEAD. Ele é palestrantre requisitado
em seminários, eventos e treinamentos sobre reestruturação de empresas no Brasil.
Toro foi indicado em 2004 para o Fórum de Líderes Gazeta Mercantil, como um líder do segmento
de Serviços Especializados no Brasil através de eleição pelos assinantes da Gazeta Mercantil, um
dos mais prestigiados jornais de negócios do Brasil.
INSOL International
Rio de Janeiro One Day Seminar
Bankruptcy Financing in
the United States and Abroad
James H.M. Sprayregen, P.C.
Kirkland & Ellis LLP
Discussion Outline
• Overview of Bankruptcy Financing in the
United States
• Impacts of the Global Credit Crisis on
Bankruptcy Financing in the United States
• Current Lending Landscape in U.S.
• Brief Survey of Foreign Insolvency Laws
and Approach to Bankruptcy Financing
• Conclusions and 2009 Outlook
• Questions and Additional Information
Brief Overview of U.S. Bankruptcy Law
and Debtor-in-Possession Financing
1
U.S. Bankruptcy Basics
• Fundamental goal of U.S. bankruptcy
laws is to give debtors a “fresh start”
• Bankruptcy Code provides for 6 types of
bankruptcy cases traditionally given the
names of the chapters that describe them
• Today’s discussion focuses on chapter 11
bankruptcy cases (reorganization cases)
Brief Overview of Chapter 11
• “Chapter 11” refers to chapter 11 of title 11 of
the United States Code
– “title 11” is generally referred to as the
“Bankruptcy Code”
• Chapter 11 is a court supervised
restructuring of a company’s business and
financial obligations
– permits management to remain in control or “in
possession” of the company’s property and
business operations
– the debtor will typically act as his own trustee,
called a “debtor in possession,” and will remain in
possession of all estate property
Life Cycle of a Distressed Business
2
Bankruptcy Financing Generally
• Debtor-in-possession (“DIP”) financing is the
lifeblood that keeps companies running
during the bankruptcy case
– available only to companies in chapter 11
– proceeds generally used to fund post-filing
obligations and ongoing operating needs
– also allows companies to put off existing debts
while attempting to raise capital and
restructure business operations
• Although DIP financing is pricier and more
constrained than traditional commercial
financing, it is valued for its availability to
limping companies
DIP Financing Structures
DIP Lending: The Good Old Days
• DIP lending historically seen as an attractive
investment:
– good position in capital structure
– superpriority claim status
– DIP loan either paid in cash upon exit or
rolled-up into exit financing facility
• Traditionally, primary lenders provided DIP
financing to protect original loan value
• Competition often led to reverse bidding war
with lower rates (e.g. LIBOR plus 250 bps)
and longer terms (e.g. 12 - 18 months)
3
The Global Credit Crisis and Impact on
U.S. Markets and Bankruptcy Financing
Enter the Global Credit Crisis
• Financial markets and institutions are facing
unprecedented structural change
– began as systematic liquidity crisis in financial
sector
– deteriorated into global crisis of market confidence
regarding ability of large financial institutions to
meet obligations and remain solvent
The Road to Recession
• Wall Street:
– bursting housing bubble helped burst credit
bubble,which froze global debt markets
– banks stuck with large soured mortgage portfolios
and highly-leveraged loans
– battered by multi-billion dollar write-downs and
plummeting stock prices, banks cut back on
lending in effort to shore up cash reserves
• Main Street:
– eventually, effects of credit crisis spilled over from
Wall Street into Main Street
– companies that relied heavily on short-term loans
found themselves (1) with severe liquidity issues
and (2) unable to meet working capital needs
4
Impact on U.S. Financial Markets
• Its official: the U.S. has been in a recession
since December 2007
– credit crisis exacerbated by economic downturn
– growth slowed across virtually all industries
• Implosion of several financial institutions:
– Lehman, Bear Sterns, Washington Mutual, AIG
• U.S. Government Intervention
– capital injection met with mixed results
– efforts do not seem to have fundamentally
strengthened precarious financial system
– immediate economic relief is not in sight
– involvement in U.S. automobile industry seems
inevitable but level of bail-out is unknown
Effect on U.S. Bankruptcy System
• Surge in commercial filings:
– February 2009 filings up 47% from 2008 levels
• Closure of DIP market over past year due to:
–
–
–
–
–
severely constricted credit markets
plummeting asset values
lack of liquidity in the market
heightened risk of reorganization failure
retreat of nervous lenders
• Increased filings + limited DIP financing=
– overly-complicated bankruptcy cases and
– more companies abandoning rehabilitation in
favor of sale process (best case) or fire sale
liquidation under a chapter 7
Reorganizing in Tough Markets
• Lenders generally more cautious about
extending credit amidst financial turmoil
• Today’s marketplace also is more
complicated now than 10 years ago
– complex deal structures due to increase in #
lenders investing throughout capital structure
– covenant light second lien loan complications
– amount of distressed debt on balance sheets
makes it harder for any one firm to end up
with real control upon emergence
5
Current DIP Financing Environment
• DIP lenders becoming more aggressive,
demanding greater security for loans that:
–
–
–
–
are more expensive (e.g. LIBOR + 600 bps)
contain tighter financial covenants
provide for shorter terms (e.g. 2 - 6 months)
include increasingly restrictive operational and
control provisions
• Companies and courts more willing to accept DIP
financing containing restrictive covenants
• Non-traditional lenders becoming DIP lenders to
take advantage of high interests rates
• Unique opportunities for private equity firms to
employ “loan to own” strategies
Back From the Dead:
Recent DIP Financings
• Despite widely-publicized “frozen” credit
markets, a handful of recent deals are
starting to revive the market
– “defensive” or “self-help” DIP loans (MM):
• Aleris ($1.5), Lyondell Basell ($8,105), Constar
($75), Propex $60), Pilgrim’s Pride ($450),
Tronox ($125), WCI ($150)
– “traditional” DIP loans (MM):
• Smurfit Stone Container ($750)
– “bridge-to-sale” DIP loans (MM):
• Chesapeake ($30), Greatwide Logistics ($74),
Circuit City ($1,1), Linens N Things ($700)
• By no means a robust market, but a market is
opening up nonetheless
Brief Summary of Foreign Insolvency
Laws and Bankruptcy Financing
6
Survey of Foreign Insolvency Laws
Country
Terms and/or Security Interest Country
Australia
Liquidation. A liquidator can obtain secured and unsecured credit as far
as is necessary for the beneficial disposal or winding-up of the company.
Priority over ordinary unsecured creditors but only in
respect of the new funds and to the value of the security.
China
England
France
Hong Kong
Priority
Administration. An administrator is able to raise loans on security over
company assets to carry on the business of the company.
Priority given to this credit, as an expense of the
administration, ranks higher than ordinary unsecured
creditors.
Bankruptcy administrator may borrow and give security over debtor’s
assets, subject to supervision by creditors’ committee and court.
There is no stipulation for special priority for those claims.
Liquidation. A liquidator has the power to raise any money required on
secured and unsecured basis.
Priority over ordinary unsecured creditors as an expense of
the liquidation but only in respect of the new funds.
Administration. An administrator has the power to raise or borrow money
on secured and unsecured basis.
Priority over ordinary unsecured creditors as an expense of
the administration but only in respect of the new funds.
A debtor may obtain secured or unsecured loans or credit.
The priority given to such loan or credit depends on
whether a liquidation or a reorganization, through a sale or
a continuation plan, is ordered by the court. Generally,
creditors who extend post-filing credit are granted
preferential rights over pre-filing creditors (with certain
employee-related exceptions) subordinate to court and
other administrative costs.
Liquidation. A liquidator in a winding-up by the court has the power to
raise any money required on secured and unsecured basis, subject to
the control of the court
The loans obtained after commencement of a winding-up
do not per se enjoy ‘super’ priority over other debts of the
company.
Reorganization. Currently there is no arrangement whereby loans made
during a reorganization would be repaid in priority to other lenders.
Proposed reorganization legislation, however, would allow
for the creation of “super-priority” debt.
Japan
Liquidation. A trustee in bankruptcy may borrow money on behalf of the
debtor only if it is necessary for the preservation and management of the
debtor’s assets.
Reorganization. A debtor or an administrator can borrow money or
provide security to a creditor to continue the debtor’s business, subject to
court approval.
Not clear.
Russia
Insolvent companies may obtain loans or credits at any stage of
bankruptcy proceedings on secured and unsecured basis, subject to the
consent of the bankruptcy manager or the creditors’ committee.
Any claims which arise from such loans or credits outrank
all other claims.
Priority over general unsecured claims.
Conclusions and Questions
A Brave New Illiquid World
• New issue markets remain challenging for the
majority of companies
• Minimal third-party financing has been available
for companies seeking to recapitalize, gain
access to incremental liquidity or refinance
pending maturities
• Increasing liquidity challenges and degenerating
economic outlook has amplified need for DIP
financing
7
Outlook for 2009
• Like the latter part of 2008, 2009 is expected
to be a challenging year
–
–
–
–
unemployment levels continue to rise
financial institutions are deleveraging
credit markets remain tight
starting to see collapse of industries
• Does not mean no upside:
– for survivors of 2008 financial hurricane, 2009
could be a year of unparalleled opportunities
– shake-out opportunities in in certain industries
– distressed debt market offers interesting
alternatives to traditional financing
Questions & Contact Info.
Contact Information
James H.M. Sprayregen
Kirkland & Ellis LLP
Citigroup Center
153 East 53rd
New York, NY 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
[email protected]
8