Representation of creditors

In a typical restructuring process creditors will form a representative body, usually referred to as a Steering Committee or Bank Advisory Committee. Traditionally these committees would consist of banks, and occasionaly, bondholders. However, due to the massive disintermediation of banks, particularly in LBO financings, the inter-creditor dynamics have become more complex and counter-productive.

P4P Global Representation of Creditors in a Restructuring Process

 

  • Certain creditor groups do not have the required manpower and/or expertise available to achieve a “fair share” result in a restructuring process. There may also be logistical constraints preventing proactive participation. P4P will be an ideal choice of representative for such creditor groups in the restructuring process/negotiations.

  • In cases where the coherence of different creditor groups is absent due to differences in financial interests and/or security positions, P4P can represent such diverse creditor groups following regular consultation with all parties involved. P4P will also play the role of coordinator with professional advisors like accountants and law firms.

  • Typically, the largest creditor(s) would chair a Steering Committee or Bank Advisory Committee. Due to their relative size in the debt to be restructured, smaller creditors’ interests may not be well represented. P4P Global can represent such smaller creditors as a group or step in as the representative of the entire creditor group if required.

  • Many non-bank creditors will neither be willing or able to participate in 'new money' transactions, resulting in a material deterioration of their position. P4P will, in many situations, be able to source alternative new investors to team up with these constrained non-bank creditors.

  • P4P is also interested to co-invest in distressed corporate credit exposure held by banks and non-bank creditors. There are no sector or geographical constraints to such co-investments, the investment driver is P4P's ability to (co) manage the entire exposure.